Every so often I find myself coaching people I’ve worked with in the past or those recommended to have a chat with me about their careers, goals, aspirations or even just a sense check on any number of items. Over the past year or two I have noticed that many (both junior, senior AND executives) have found times pretty tough.
Economic uncertainty seems to be the curlprit, with tech companies facing fluctuating markets, rapid shifts in consumer behaviour, and increasing investor pressure for profitability. This has led to the desire for more commercially minded product managers [https://productmagic.io/show-me-the-money-why-product-leaders-need-to-be-more-commercially-minded-than-ever-in-2024] but also has a negative side – layoffs.
Tech layoffs have meant that smaller product teams have to navigate challenging environments with fewer resources. To thrive in such times, product leaders must prioritise resilience—building teams that can adapt, innovate, and deliver value even in adversity. I found some great insights from the product team restructures at Stripe and Meta and have a few tidbits of my own. I’ll also pen a post on building resilience as I’ve mentioned this in the past but thought it worthwhile to bring up again.
The Context: Why Resilience Matters More Than Ever
Since late 2022, many technology companies announced significant layoffs. Stripe cut 14% of its workforce in November 2022, citing the need to reduce operating costs amid a slowing economy. Similarly, Meta implemented multiple rounds of layoffs, totalling over 21,000 employees by mid-2023, as it refocused on its core business and pivoted away from some experimental initiatives.
These layoffs highlight the need for product leaders to respond not only to immediate challenges but also to prepare their teams for long-term adaptability. Resilience in a product team isn’t just about survival; it’s about creating an environment where innovation and customer focus persist, regardless of external pressures.
Lesson 1: Clear Prioritisation—Fewer Projects, Bigger Impact
One of the most common themes in Stripe’s restructuring was the emphasis on sharpening its focus. CEO Patrick Collison noted that the company had “overhired for the world we’re in” and needed to prioritise its most impactful projects. Post-layoffs, Stripe narrowed its efforts to core payment products, shelving or scaling down initiatives that didn’t directly contribute to revenue growth or customer retention.
Actionable Takeaway: As a CPO, assess your product portfolio regularly to identify projects that align closely with strategic goals. Actually USE frameworks like RICE (Reach, Impact, Confidence, Effort) to evaluate priorities objectively, ensuring that the team’s energy is channelled into initiatives with the highest potential ROI.
Lesson 2: Invest in Cross-Functional Collaboration
Meta’s layoffs were accompanied by a strong internal message about “efficiency” and breaking down silos between teams. CEO Mark Zuckerberg referred to 2023 as Meta’s “Year of Efficiency” and emphasised cross-functional alignment to avoid duplicative work and reduce bottlenecks.
Actionable Takeaway: Build a culture where product, engineering, and design teams collaborate seamlessly. Regular cross-functional check-ins, shared OKRs, and co-located resources can enhance efficiency and reduce friction. Tools like Miro or Figma can facilitate alignment in distributed teams if you’re not already using these.
Lesson 3: Embrace Lean Practices Without Sacrificing Quality
Economic downturns often necessitate doing more with less. However, this doesn’t mean sacrificing product quality. Stripe’s approach to leaner operations involved automating repetitive tasks and leveraging data-driven decision-making to minimise inefficiencies while maintaining customer satisfaction.
Actionable Takeaway: Introduce lean methodologies such as agile sprints, where incremental value is delivered and validated frequently. Encourage your team to embrace a test-and-learn mindset, where MLPs (Minimum Loveable Products) are rigorously tested with real users before scaling. But don’t skimp on quality – shipping a bunch of crap will have a bad effect on users, reviews AND the team – and you’ll end up doing twice the work to fix it.
Lesson 4: Prioritise Employee Well-being
Layoffs and economic uncertainty take a toll on morale, and disengaged teams are unlikely to deliver their best work. Stripe and Meta both introduced initiatives to support remaining employees, from transparent communication about company direction to mental health resources.
Actionable Takeaway: Foster an open dialogue within your team. Regular one-on-ones, anonymous surveys, and town halls can help surface concerns early. Investing in well-being initiatives, such as flexible working arrangements or access to counselling, demonstrates your commitment to your team’s health and productivity. Don’t do lip service. If you do then you’ll end up with a slew of awful Glassdoor reviews. There is nothing worse than a company that spouts employee wellbeing, work-life balance blah blah but under delivers on all points.
Lesson 5: Double Down on Customer-Centricity
Resilient product teams focus on delivering value to customers above all else. Stripe’s renewed commitment to its core payments business exemplifies this approach. By centring its efforts on what customers need most, Stripe not only weathered economic challenges but also strengthened its market position. This might mean parking some of your experiments or moonshot ideas for now.
Actionable Takeaway: Revisit customer feedback loops. Whether through NPS surveys, usability testing, or direct interviews, ensure your team has a clear understanding of what customers value most. Use this insight to refine your roadmap and deliver features that truly address pain points. I still am incredulous as to how little companies actually speak to real users – do it! Run audits, re-evaluate your product and the value it is delivering (or not). Hire me to do this!
Building Your Resilient Team – Probably the most important!
In a volatile economic climate, product leaders have a unique opportunity to demonstrate their value by steering their teams through uncertainty with confidence and purpose. By focusing on clear prioritisation, fostering collaboration, embracing lean practices, prioritising well-being, and staying relentlessly customer-centric, you can ensure your product team not only survives but thrives.
As we look ahead to 2025, the most successful product teams will be those that see uncertainty not as a threat but as an opportunity to innovate and build stronger foundations. Learning from the challenges faced by companies like Stripe and Meta, today’s CPOs can lead the way in crafting teams that are resilient, adaptable, and equipped to deliver lasting value.