Why Efficiency Sometimes Gets Lost: Pavel Durov’s Take on Corporate Overstaffing

In a conversation about corporate efficiency, Pavel Durov reflected on why some major companies, like Twitter before Elon Musk’s leadership, seem to have more employees than necessary. His answer? It’s less about operations and more about optics—especially when it comes to Wall Street.

Pavel Durov, CEO, Telegram

The Overstaffing Dilemma

Durov shared an insight that highlights a common corporate conundrum. Before Elon Musk’s takeover, Twitter reportedly operated with a significantly bloated workforce. Durov suggested the platform could function with just 20 people. Yet, according to his conversations with previous CEOs, layoffs weren't an option because downsizing could alarm investors and harm the company’s stock price.

Wall Street's Influence on Efficiency

Wall Street tends to equate large layoffs with trouble. In Durov’s account, previous Twitter executives chose to maintain a bloated workforce, not because it was necessary, but to avoid raising red flags for shareholders. This fear of perception over performance led to inefficiencies, where teams and departments existed without contributing meaningfully to the company’s goals.

Why Durov Runs Telegram Differently

Durov’s Telegram operates with a lean and focused team. Known for its efficiency, the messaging platform relies on a small, highly skilled group of engineers and staff. Unlike companies driven by investor expectations, Telegram prioritizes its mission of delivering a high-quality product over appearances. This minimalistic approach has allowed Telegram to innovate rapidly while staying agile.

Lessons from the Tech Industry

This isn’t an isolated case. Many companies, especially those publicly traded, balance operational decisions with investor confidence. For example, Yahoo in its early days expanded its workforce rapidly, only to later face challenges of inefficiency and restructuring. On the flip side, companies like Instagram started with small, dedicated teams, proving that success doesn’t always require scale.

A Call for Purposeful Growth

Durov’s story is a reminder that bigger isn’t always better. Companies should prioritize building teams aligned with their mission rather than growing for the sake of appearances. After all, in today’s fast-paced tech world, agility and focus often outperform size.

For aspiring entrepreneurs, the message is clear: build with purpose, keep your operations lean, and don’t let external expectations dictate your company’s efficiency.

Watch Pavel Durov:

Source: Telegram Creator on Elon Musk, Resisting FBI Attacks, and Getting Mugged in California