Every other week, we gain Altitude with the founders, operators, dealmakers, allocators, marketers, and technologists shaping tomorrow. Engage with Successful Companies and Founding Teams | VC, PE, M&A, and Credit Transactions | Growth Metrics, Benchmarks, Charts & Data | New and Emergent Technologies | Founder Productivity Hacks, and more... You can learn more about Cirrus Capital Partners at www.cirruscap.com
Layoffs as a Strategy, Breaking Down Revenue by Employee, Y Combinator's Unicorn Playbook, and Bezos' Reinvesting Playbook
Published 1 day ago • 8 min read
Altitude Newsletter
Layoffs as a Strategy, Breaking Down Revenue by Employee, Y Combinator's Unicorn Playbook, and Bezos' Reinvesting Playbook
Welcome back! The past few weeks have been packed: major deals closed, fresh insights revealed, and the launch of our slick new website. We’ve got a killer edition lined up, so let’s dive in.
Here’s a bird's eye view of what's on the docket:
> Are Layoffs the New Power Move?
> Cirrus Updates
> What's Happening
> Founder Resources
> Fresh Fundings & Term Sheets
Our mission: every other week, we “gain Altitude” with the founders, operators, dealmakers, and technologists shaping tomorrow. All aboard!
Are Layoffs the New Power Move? (Maybe... if you play it right)
Another week, another round of corporate bloodletting. Blue Origin just slashed 10% of its workforce. NetEase gutted its Marvel Rivals team. TikTok is “restructuring” its trust & safety division.
Every week, another headline. But let me be real—these aren’t desperate survival moves. In 2025, layoffs have become... a strategy!
Once upon a time, cutting jobs meant your business was in trouble. Now? It’s an investor-friendly signal that you’re “getting disciplined.” The market eats it up. Execs get to parade their newfound operational efficiency. Boards nod in approval. But let’s not pretend every company is suddenly more profitable or streamlined post-layoff. Most of them don’t actually get better—they just get smaller.
Here’s where most go wrong: they think cutting costs equals fixing the business. It doesn’t. A lower burn rate isn’t a strategy—it’s just a band-aid.
Sure, some layoffs are necessary (dead weight, bad hires, over expansion), but great operators don’t stop there. They don’t just trim the fat. They redeploy resources into revenue-generating moves.
If your gut reaction to a downturn is to cut headcount and hunker down, you’re playing not to lose.
Meanwhile, the winners are out there buying market share, doubling down on high-ROI bets, and hiring top-tier talent on the cheap... while everyone else is cutting.
Great co's don’t just cut costs in a downturn - they reallocate capital. Layoffs might shrink burn, but they don’t build momentum. So:
The ABL market is in flux. The ABL Advisor “State of the Union” report reveals more deals are getting done, but lenders are being selective.
If you have strong fundamentals, you’ll find capital.
With rates stabilizing and banks staying conservative, private lenders are filling the gap. Translation: If you’re raising debt, timing matters. The smart money is locking in financing now, while spreads remain favorable.
The Generalist lays out how Bezos built Amazon into a behemoth by playing longer and smarter than anyone else.
Bezos rewrote the rulebook on how to dominate markets.
While most CEOs chase quarterly profits and Wall Street’s approval, Bezos took the opposite approach:
Reinvest everything. Profits weren’t for cashing out—they were fuel for total market capture.
Obsess over customers, not competitors. Because if you control demand, competitors don’t matter (as much).
Play the longest game in the room. Short-term losses weren’t a problem; they were leverage. Re-investing is his game.
This is a warning shot. The companies that compound over decades aren’t optimizing for next quarter’s earnings call. They’re optimizing for total control.
Think in terms of empire-building, not extracting and stashing.
SaaS founders are obsessed with efficiency—cutting burn, hitting the Rule of 40, and squeezing every last ounce of ARR per headcount. This is good and well.
But here’s the irony: the VCs funding them are running a far more profitable game.
CJ Gustafson breaks down the numbers:
Most SaaS companies generate ~$400K per employee.
Meanwhile, VCs quietly rake in $800K+ per employee without breaking a sweat.
Tech companies sitting at the top are taking from that playbook. RPE is a KPI they're thinking about, measuring, and optimizing for. See the trend?
Some companies optimize for headcount. Others optimize for capital efficiency. Guess which ones print cash?
So, SaaS founders are in the trenches—I know this; we help dozens of them every day. They're fighting for every dollar of ARR, hyper-focused there.
Meanwhile, their VCs collect fees and carried interest like clockwork. Steady. Efficient. Sustainable.
Not saying one model is better; I'm saying that tech founders can learn a thing or two about efficient capital allocation from those who fund them.
If you’re in SaaS, you’re building a machine. If you’re in VC, the best metaphor is that you own the casino.
Dan Hockenmaier explains how to structure a company for actual execution—not meetings, politics, or internal chaos. The core idea: Keep teams small, maintain urgency, and bias for action. The best founders build organizations that move fast without getting bogged down in bureaucracy. If you’re scaling, ask yourself: Are you building a company—or a machine that builds companies?
Elad Gil raises a sharp point: Why are startups still defaulting to Delaware? Between rising costs, legal fees, and shifting regulations, more founders are considering alternative incorporation hubs. The TL;DR is this: Delaware isn’t bad, but it’s not automatically the best choice anymore. If you’re launching a company in 2025, it might be time to rethink the old playbook.
In "Business for Good," host Paul Shapiro converses with entrepreneurs and industry leaders who are leveraging their businesses to address pressing global challenges.
Each episode delves into innovative solutions and the stories behind companies striving to make a positive impact. It's an inspiring listen for those interested in the intersection of profit and purpose.
This new documentary by filmmaker Chris Smith profiles Bryan Johnson, a tech entrepreneur dedicated to defying aging through controversial practices, including plasma transfusions.
The film offers a compelling look into the lengths one man will go to achieve longevity, sparking discussions about the ethics and future of anti-aging technologies.
Fresh Fundings 🥧
Recent Equity Rounds
💰 QuEra Computing Closes $230M Funding Round Boston-based QuEra Computing secured $230M from Google Quantum AI and SoftBank to advance fault-tolerant quantum computing.
💰 Apptronik Raises $350M for Human-Centered Robotics The Austin-based robotics company landed $350M to scale its next-gen, human-assistive robots for industrial applications.
💰 Harvey Secures $300M to Revolutionize Legal Tech AI-powered legal tech startup Harvey raised $300M to streamline research, contract analysis, and document review for law firms.
Recent Credit Transactions (February)
💳 $140MM Revolving Credit Facility - Eclipse Business Capital Eclipse Business Capital provided a $140 million revolving credit facility to a specialty retailer, secured by accounts receivable and inventory, to restructure debt and support working capital.
💳 $35MM Asset-Based Lending Credit Facility – Bank of America FreightCar America, a diversified manufacturer of railroad freight cars, secured a $35 million asset-based lending credit facility from Bank of America. This facility aims to support its operational needs.
💳 $50MM Asset-Based Revolver - PNC Bank PNC Bank underwrote a $50 million asset-based revolver for NN, Inc., refinancing debt and providing ongoing working capital.
Private credit is still wide open, but lenders are getting pickier. If you’re raising debt, structure your deal with strong fundamentals. Liquidity is there, but only for those who check the right boxes.
💳 $9M ABL Revolving Facility for a leading company in the facility maintenance space
💳 $3M Revenue-Based Financing for an innovative healthcare software provider experiencing rapid growth
💳 $7.2M Senior-Secured ABL Term Loan for a private company in the aviation sector to finance a new fleet of private aircraft
Recent M&A
♟️ M&G Acquires Majority Stake in P Capital Partners UK-based M&G has acquired a 70% stake in Stockholm's private credit firm P Capital Partners, aiming to strengthen its position in European private markets.
♟️ UniCredit Considers Withdrawal from Banco BPM Acquisition UniCredit has threatened to abandon its €10 billion bid for Banco BPM if BPM's shareholders increase the offer price for asset manager Anima.
♟️ BHP Shifts Focus Away from Large-Scale M&A Mining giant BHP has decided to move away from pursuing large-scale mergers and acquisitions, such as its previous $49 billion bid for Anglo American, and will focus on organic growth in copper and potash sectors.
New Businesses for Sale
💼 Recession-Proof Baby E-Commerce Store - A profitable, hands-free e-commerce business selling baby essentials like bottle warmers, breast pumps, and wrap carriers. With two employees managing operations and direct factory-to-Amazon shipping, it runs with minimal owner involvement. The business generated $95K profit in 2024 and is priced to sell fast at $134,999. A perfect opportunity for investors looking for a steady, recession-proof income stream. See on BizBuySell.
💼 DTC Pheromone Perfume Brand - $640K in Upcoming Subscriptions A fast-growing health & beauty e-commerce brand specializing in pheromone-based perfumes with a subscription-driven model. Built on Shopify and SaaS, it operates on autopilot with 40% margins and nearly $100K/month in profit. With consistent growth and low owner involvement, this is a high-cash-flow business for an investor looking to scale. Confidential listing—serious inquiries only. See on Flippa.
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Every other week, we gain Altitude with the founders, operators, dealmakers, allocators, marketers, and technologists shaping tomorrow. Engage with Successful Companies and Founding Teams | VC, PE, M&A, and Credit Transactions | Growth Metrics, Benchmarks, Charts & Data | New and Emergent Technologies | Founder Productivity Hacks, and more... You can learn more about Cirrus Capital Partners at www.cirruscap.com
