Musk’s Cost Cutting Moves at Twitter Do Not Bode Well for it’s Financial Future
In short, since Musk has taken the Twitter helm:
- Half the Employees have been fired
- All of the executives have been fired or quit
- Twitter has lost one million users
- Ad revenue is down significantly, due to activists, according to Musk
- AOC has balked at paying $8.00 a month for her blue check mark
- Trump will be allowed back after the mid-term U.S. elections
- Saudis Investment in Twitter raise alarms on Capitol Hill
And while the question of the long-term survival of Twitter has not been widely asked, the above bullet points don’t bode well — how does a company run without leadership and with half of the employees fired?
The answer is likely not very well.
As Musk put it in this video, he has tried to appease the advertisers and activists, to no avail — here’s the video of Musk discussing it.
And will the activists against Twitter be any less against Twitter when Trump returns?
My guess is that charging users a fee for something that now costs them nothing, will likely not work. It’s like trying to get the now half of Americans who pay no income tax, to start paying. Tough sell.
And if Twitter is still burning cash after this, will Musk or others belly up to the bar to subsidize Twitter?
Does Musk even like Twitter?
If Musk did not borrow $44 billion to buy Twitter, then a reasonable conclusion of his actions to date would be that he bought Twitter to tank it.