Heard this week: the real cost of a support layoff

Heard this week: the real cost of a support layoff
A source who was in the room tells us a host that cut 35% of its support team to hit a margin target got a lesson in hidden costs. The savings looked clean on paper — roughly $2.1M annually.
Then the numbers everyone forgot showed up. Mean time to resolution on infrastructure tickets doubled within two months because the cut team held all the tribal knowledge. Churn among accounts over $500/month — the ones that actually fund the company — rose to 11% from 4%.
The net, per our source: the layoff cost more in lost high-value revenue than it saved by Q3.
Unconfirmed, but two of the laid-off engineers were reportedly rehired as contractors at higher rates.
Watch this: someone is finally modeling knowledge loss as a line item.