Tuesday, February 27, 2024
HomeBusinessWhy Doesn’t Elon Musk...

Why Doesn’t Elon Musk Fund Twitter Until It Turns Around?

With all of the terrible news hitting the press regarding layoffs and bills not being paid by Twitter, it does beg the question why doesn’t Elon Musk—one of the richest people in the world—-put some money into the company until he can get things under control.

After all, this is a $44 billion investment that he is putting at risk, and it would seem like throwing a few more billion dollars Twitter’s way would be much more productive than creating terrible morale with employees and distrust with vendors.

CNBC reported that Twitter was sued last week by a tech startup called Writer, Inc., making it the sixth company to sue Twitter for non-payment since Elon Musk took over the company about four months ago.

Many of the amounts owed are relatively small—the Writer Inc., bill, for instance is only $114K. One of the other six vendors suing, however, has gone into financial distress itself. The landlord of the San Francisco headquarters Columbia REIT has defaulted on loans, including one against the Twitter headquarters at 650 California Street in San Francisco.

Musk is apparently taking it in stride, tweeting last week, “Say what you want about me, but I acquired the world’s largest non-profit for $44B lol.”

But to vendors left in the lurch and employees being shown the door, this is no laughing matter. Although layoffs at Twitter are no surprise, the one conducted over this weekend was. It was small (about 200 people, 10% of the remaining staff), however, some of those cuts were definitely out of left field.

For instance, according to The Information, Esther Crawford, a product director who was put in charge of the Twitter Blue subscription product was let go.

She appeared in a viral photo sleeping on the floor at headquarters to show her enthusiasm for Elon Musk’s new “extremely hardcore” work ethic. “The worst take you could have from watching me go all-in on Twitter 2.0 is that my optimism or hard work was a mistake,” Crawford tweeted.

Martijn de Kuijper, a senior product manager based in Holland, tweeted that he too learned of his dismissal when he was unable to log into his corporate computer system. “Waking up to find I’ve been locked out of my email,” tweeted de Kuijper, the founder of newsletter tool Revue. He has been at Twitter since it acquired his company in 2021.

Total employees at Twitter have been slashed from almost 8,000 when Musk took over to less than 2,000. Musk said in December that Twitter was on track to reach $3 billion in revenue in 2023, 59% of the $5.1 billion posted in 2021.

Another issue that has plagued the company is that key workflow tools have been cut off like Slack and Jira, the latter being a tool that Twitter uses to track a wide range of things from feature updates to regulatory compliance. Most engineers went home as they had no way to chat and no code to ship, and the service was restored the following day. Slack, it was reported, was cut off internally but for what reason it is not known.

All of these cuts clearly are going to have an impact on the platform—it was reported there was a 20-minute outage in parts of Asia last week.

Source: Forbes

Follow us on Twitter. Send us a secure tip

- A word from our sponsors -

Most Popular

More from Author

Microsoft’s Strategic Acquisition of OpenAI’s Sam Altman Sends Stocks Soaring to Record High

Microsoft, a leading tech giant, has propelled its stocks to unprecedented...

Dating Services Industry to Hit 600 Million Users, $8B in Revenue Next Year

The dating services industry has seen impressive growth over the past...

Citi Launches Securities Lending Access™ In Sweden

LONDON – Citi Securities Services announced Nordnet AB (Nordnet), the leading...

- A word from our sponsors -

Bridging Cultures, Building Futures: The Kiige and Emmanuel Initiative for Immigrant Empowerment in Canada

In the heart of Canada's multicultural landscape, Duncan Kiige and Emmanuel, both celebrated public speakers with immigrant backgrounds, have become symbols of hope and transformation for new immigrants. Their recent conference on career and personal development marked a significant milestone in their mission to empower newcomers with...


The NRM government is very proud to see the example of our young people begin to build Uganda by putting up projects such as this one. We congratulate Ham Kiggundu for this excellent jobKAMPALA UGANDA| As sports lovers countdown to 2027 when the Nakivubo-based Hamz Stadium will...

Raila’s search for a post with the AU Commission could be a suitable trapdoor or departure.

In Kenyan politics, Raila Odinga has long been a mystery. His international performance? Even when the African Union designated him, he remained debatable.But he said on Thursday that he would run for the position of Chairperson of the African Union Commission. One diplomat tampered with his first...

Court Finds Jowie Irungu Guilty of Monica Kimani’s Murder

In a landmark ruling, Justice Grace Nzioka declared Jowie Irungu guilty of the murder of Monica Kimani. According to Justice Nzioka, the evidence presented convincingly establishes Jowie's culpability in the crime beyond a reasonable doubt.Highlighting the sequence of events, Justice Nzioka outlined how Jowie, armed with a...

KUPPET Questions Government Directive For Parents To Pay Schools Fees E-Citizen Platform

KUPPET opposes the Government directive for parents to use eCitizen platform to pay school fees calls for clear public participation, legislation and policy framework.KUPPET national officials have opposed the move by Government to force parents to use eCitizen platform to pay school fees saying it will be difficult for...

List of best Audiology Services in Nairobi, Kenya

List of best Audiology Services in Nairobi, Kenya. The word audiology is made up of two roots: Audio and Logy. ‘Audio’ refers to ‘hear’ and ‘logy’ to ‘the study of’. In essence, audiology is the study of hearing - as the inner ear is also required...