The Strangely Reflexive SaaSpocalypse

Here's something that caught my attention — when SaaS companies face a sudden drop in demand, their reflex is to cut costs fast. But Byrne Hobart points out that this reflexive reaction can actually deepen their trouble, creating a cycle that's hard to break. According to Hobart, the problem isn’t just about the immediate revenue dip; it’s how companies react — slashing expenses, shrinking their teams, and trying to weather the storm. This, in turn, often hampers their ability to innovate or adapt quickly, making recovery even harder. Byrne Hobart emphasizes that the real challenge is understanding the feedback loop at play — where falling demand triggers cuts, which then slow down growth even more. So what does this mean for you? If you're in charge or investing in SaaS, you’ve gotta see beyond the panic. It’s about smarter responses — investing in resilience, not just slashing costs. The key takeaway from Hobart’s insight is that reflexive cuts can make the SaaSpocalypse worse, unless you think strategically from the start.