This firm cut costs by 15% – without any layoffs

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Hello reader,

I’m definitely feeling the pinch from all the crazy stuff that’s going on with inflation and other rising costs right now. At many coffee shops and hawker centers I’ve gone to, stalls have raised their prices by anywhere from S$0.20 (US$0.15) to S$0.50 (US$0.37) per dish. For reference, most dishes cost around S$4 (US$2.95) each on average.

Many times, it’s not even the stall owners’ faults. The cost of ingredients has gone up, along with ridiculous spikes on rentals by some landlords.

That said, food is one of the most in-your-face things when it comes to price increases. And when that happens, the pinch starts to really hurt. So goodbye Grab rides, food deliveries, and other non-critical expenses – it’s time to hunker down and reduce my spending.

Likewise, many firms are looking to cut costs as much as they can. That said, while some companies are resorting to mass layoffs, others are looking to avoid pressing that button. GajiGesa, an Indonesian earned-wage access startup, appears to have found just the right balance.

Today we look at:

• GajiGesa taking 15% in costs off its balance sheet without resorting to job cuts
• Airwallex getting a foothold in mainland China
• Other newsy highlights such as Salesforce entering the generative AI race and Sea Group’s positive quarterly results

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Cutting costs not people

Image credit: Timmy Loen

Amid all the layoff news, it’s nice to see that some companies have managed to avoid taking that measure and find other successful cost-cutting strategies. GajiGesa is one such firm – let’s take a look at what it did.

• Down 75%: Co-founder Vidit Agrawal shared that GajiGesa has reduced almost 75% of its engineering spends, which is the second-largest cost item on its balance sheet (the largest being salary expenses).
• Let the machines work harder: Automation has also helped the firm make their operations more cost-efficient. One solution it uses is Retool, which helps the engineering team create mockups.
• What goes first?: When it comes to cutting salaries or jobs first, Agrawal leans more toward the latter. That’s because salary deductions “really hits morale,” he explains.

Read more: Here’s how GajiGesa reduced costs by 15%

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