I think he's talking in absolute terms versus relative terms that founders are used to thinking in.
Imagine that you have $3 million in runway, but you are burning $500K a month. That only gives you 6 months of runway.
It takes perspective to zoom out to realise - "Hey, I actually have $3 million in the bank. That's a lot of money. If I can somehow reduce costs to $150K a month, I actually have 20 months of runway to figure things out."
Unfortunately, this means "cutting more than needed".
Exactly. That survival will be better for everyone, even those you have to lay off because you can build from there and likely hire some of them as things stabilize.
I think he's talking in absolute terms versus relative terms that founders are used to thinking in.
Imagine that you have $3 million in runway, but you are burning $500K a month. That only gives you 6 months of runway.
It takes perspective to zoom out to realise - "Hey, I actually have $3 million in the bank. That's a lot of money. If I can somehow reduce costs to $150K a month, I actually have 20 months of runway to figure things out."
Unfortunately, this means "cutting more than needed".