Is this backwards? A cost center is something that (management believes) doesn't makes money, only spends it. A profit center is something that (management believes) makes money AND spends it. The former is (in this framing) pure cost, to be cut to the bone, while the latter gets more leeway since it is an "investment". In reality, I think the causality works the other way: stuff management wants to cut is defined as a cost center (requiring cost cutting), while stuff management wants to spend money on is defined as a profit center (requiring investment).
No, not backwards. That’s how it is. I’ve observed this in several companies in the industry, starting with Microsoft. At the time the most profitable business unit was Office, and you couldn’t even get a t-shirt or other swag.
