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@ Xerxes42 - I find it interesting that near the end of your comment, you realize what you're saying doesn't work unless Ted doesn't eat their heads; which is the tastiest part, by the way. lol
Also, if PHB really wanted a higher head count but lower salary expense, why would he regret letting Ted stay and eat other employess? (but not their heads)
I suppose there is always the risk that he might eat customers but so long as he does it after they sign the contract that might not be such a bad thing. And as for vendors, they're a dime a dozen.
No, usesswhatever, he'll have a higher headcount but lower salary expense. I don't see how he loses. If (Let's just call him Ted, even though he doesn't look like him) devours other employees(but not their heads), he'll be doing even better!