Adjusting Kubernetes resource limits is crucial to avoid waste and optimize cloud costs. Containers often use less than a third of their requested CPU and memory, highlighting the need for careful planning. To manage resource limits and requests effectively, it's essential to identify inefficiencies using metrics like CPU utilization and memory usage, choose the right scaling approach, set the right Kubernetes resource limits and requests, consider Quality of Service (QoS) classes, use autoscaling mechanisms, and perform regular remedial steps to ensure continuous improvement. By following these tips, developers can optimize their cluster for cost-effectiveness and improve overall efficiency.