Headcount does not translate into product quality, and often the opposite: too many people spend their time coordinating, and the idle ones demotivate the rest.

Well, what we realized really early is that quantity of employees doesn't translate the quality of the product they produce. In many cases, it's the opposite. If you have too many people, they have to coordinate their efforts, constantly communicate, and 90% of their time will be spent on coordinating the small pieces of work they're responsible for between each other.