Elon reduces costs and  Twitter Facing tremors

Unquestionably a shell of what Twitter once was in terms of people power. Over three-quarters of the company's staff have left voluntarily and through layoffs since Elon Musk took over the social media platform at the end of October 2022. The reductions persisted on Wednesday.

The company has slashed about 40 additional jobs in its data science and engineering sectors, according to a report from The Information. A source close to the matter also confirmed Wednesday layoffs to Gizmodo and noted that the product software engineering, monetization, and advertising prediction teams were the most impacted.

The task of the ad predict team was to create ad algorithms and use machine learning to determine the best way to target advertisements to Twitter users. According to The Information, Twitter may not be able to optimise its ads and associated revenue without that engineering know-how.

Additionally, Twitter has already struggled with ads during the Musk era. Since October, fewer people are now willing to pay for platform advertising space. Due to worries about platform moderation, well-known companies like General Motors and United Airlines announced pauses on their Twitter advertising.

According to a December 2022 article from The New York Times, the site's overall U.S. ad revenue was 80% lower than internal expectations for the time of year.

The company's desperation is beginning to become apparent in response. After a nearly four-year ban, Twitter announced on Wednesday that it would once again permit political ads in its feed. This decision was probably at least partially motivated by financial considerations.

The cost-cutting measures are another. Musk allegedly cut corners on everything from Twitter's California headquarters rent to employee benefits. The employee reductions this week mark at least the third time since the middle of December and at least the fourth since the beginning of November.

Elon Musk reportedly informed investors that he intended to reduce Twitter's workforce by about 75% before purchasing the company and taking over as CEO. He later denied that plan, but it did come to pass.

According to a Tech Crunch analysis, at least 75% of the former 7,000 full-time employees of Twitter no longer work there. Additionally, a source familiar with the situation told Gizmodo in late December 2022 that the workforce had been cut from 7,500 to 1,750.

The rapid cuts and layoffs have already led to at least three lawsuits against Musk and the company, alleging everything from gender and disability discrimination to a failure to adhere to California labor laws. And Twitter’s legal trouble is likely only just beginning.

Next : Embracing the Divine: Ganesh Chaturthi 2023 Celebrations, Greetings
Read More