Experiencing database issues due to a bloated events table with over 30 million rows occupying 18GB of disk space, the team, with assistance from Engine Yard, identified and eliminated slower queries to restore performance. The plan to manage this involves splitting the events table into two: the existing one for current data and an "events_archive" for older entries, which will be archived nightly via a cron job to significantly reduce the table's size. Additionally, all queries interacting with the events table will be re-evaluated to ensure optimal indexing, with ongoing updates promised to track progress.