Publications
Publications
- July–August 2023
- Harvard Business Review
Case Study: How Should a Start-Up Cut Its Burn Rate?
By: Nitin Nohria, Katie Josephson, Sophia Wronsky and Elizabeth Rha
Abstract
Tyler Smith, the founder and CEO of the enterprise software firm Puck.io, is facing a hard decision. Just three months earlier the company laid off 20% of its employees to reduce its burn rate amid growing economic uncertainty and a suddenly unattractive funding environment. The company’s lead investor and its board think more cost cuts are necessary, and they’re pushing Tyler to execute a second, 10% reduction in force. Worried about employee morale if they do back-to-back layoffs, Tyler and two other members of the C-suite are looking for alternatives.
Keywords
Employees; Job Cuts and Outsourcing; Governing and Advisory Boards; Business and Shareholder Relations; Business or Company Management; Business Startups
Citation
Nohria, Nitin, Katie Josephson, Sophia Wronsky, and Elizabeth Rha. "Case Study: How Should a Start-Up Cut Its Burn Rate?" Harvard Business Review 101, no. 4 (July–August 2023): 144–149.