The death Spiral of cost cutting 

Canceling a loss-making flight. Discontinuing a product line. Dropping an “unprofitable” customer.
On paper, these decisions seem logical. But what if they actually end up costing the company more money?

Many businesses focus only on visible costs and overlook the difference between fixed and variable costs. The result? Dangerous decisions that trigger a downward spiral: lower revenue, higher costs per unit, and eventually even more cost cutting.

In this blog, you’ll discover why cutting costs can sometimes have the opposite effect, and how understanding cost behavior leads to smarter business decisions.