Rippling Exec Advocates Deliberate Understaffing

Rippling's Chief Product Officer, Matt MacInnis, has publicly detailed a management philosophy centered on deliberate understaffing. During an appearance on the "Lenny's" podcast, MacInnis stated that he intentionally assigns fewer resources to projects than are requested. He believes this approach keeps teams focused and prevents the low morale that arises when employees have idle time. MacInnis described this strategy as necessary to maintain a competitive edge, arguing that slowing down allows competitors to capture market share. His comments reflect a growing movement within the technology sector to prioritize efficiency and "scrappiness" over expansion and bureaucracy.

In a recent episode of the "Lenny's" podcast, Matt MacInnis shared his approach to resource allocation at Rippling. MacInnis, who joined the company as Chief Operating Officer in 2019 before becoming CPO, stated that he purposely gives teams fewer people than they need. "Everyone is constantly asking for more resources," MacInnis said. "Of course, where we can afford to and where it's appropriate, new resources arrive, but it is really important to me that we feel that we've deliberately understaffed every project at the company."

MacInnis argues that this scarcity forces teams to operate at maximum capacity. He believes that working late or on weekends when problems arise distinguishes good teams from great ones. He likened this to running an engine at its limit. "You got to run the engine at the red line at all times," MacInnis stated. "Because the minute you let your guard down, the minute you slow down, the minute you relax, the minute you leave a crack for your competition, the great teams are going to come in and kick the good team's ass."

The primary goal of this strategy is to eliminate inefficiency. MacInnis noted that when teams have excess capacity, employees often become distracted and morale dips as they "just twiddle their thumbs." By keeping the workload high, he aims to maintain a constant sense of urgency and focus within the organization.

While MacInnis advocates for a high-pressure work environment, he draws a distinction between organizational pace and individual health. He clarified that while the company as a collective entity must remain aggressive, individual employees should still prioritize their personal lives. "You can't grind the individuals down, but the team as a collective group of people has to be sort of on the ball all the time," he explained.

MacInnis added that individuals should "take vacations and live their lives." However, he maintained that the organization cannot afford to take breaks as a whole. He views the relaxation of the company's operational tempo as a direct threat to its success. According to MacInnis, slowing down creates a vacuum that competitors are eager to fill, potentially resulting in lost market share.

The strategy advocated by MacInnis is being implemented at a rapidly growing company. Rippling, a human resource software startup founded in 2017, has secured significant backing from major investors, including Kleiner Perkins, Sequoia Capital, Greenoaks, and Y Combinator.

In May, the company raised $450 million in a funding round. This capital injection brought Rippling's total valuation to $16.8 billion. The company's aggressive staffing approach appears to be a calculated move to maintain momentum during this period of high valuation and rapid expansion.

MacInnis's comments echo a wider shift in the technology industry. Over the past two years, many tech leaders have pivoted toward a philosophy of "doing more with less." This involves cutting middle-level management, reducing bureaucracy, and streamlining teams to prioritize speed and efficiency.

Other industry giants are adopting similar stances. In April, Intel CEO Lip-Bu Tan outlined a plan to change the company's culture. He noted that previously, "the most important KPI for many managers at Intel has been the size of their teams." Tan stated that going forward, "The best leaders get the most done with the fewest people."

Similarly, Amazon CEO Andy Jassy wrote in a September 2024 letter that the company aims to "operate like the world's largest startup." He highlighted values such as "scrappiness and frugality" and "strong urgency." In late October, Amazon announced it would lay off 14,000 corporate employees, citing the rapid advancement of AI as a factor in its need for efficiency.