Whatâs Going On Here?Elon Musk reportedly laid out plans this week to cut half of Twitterâs workforce. What Does This Mean?It was back in the heady days of early spring that Elon Musk first offered to buy Twitter, and itâs taken him till past spooky season to make good on his offer. The interimâs been pretty chaotic, but a whirlwind of back-and-forths, legal challenges and defenses ultimately forced the deal through â and now the worldâs richest man is on a cost-cutting crusade. Little wonder, either: markets have tumbled drastically since April, meaning itâs likely Musk seriously overpaid for the big blue bird. Thatâs probably only strengthening his resolve to bid adieu to 3,700 employees, half Twitterâs entire workforce. Why Should I Care?Zooming in: Free speech, empty pockets.
Cutting costs is just one side of the equation: Twitter needs to start bringing in more dough too, and that could prove trickier. See, Muskâs vision of Twitter as a bastion of free speech has got businesses clutching their pearls (tweet this), halting ad spending left, right, and center. Interpublic â one of the worldâs biggest ad groups â told its clients to postpone Twitter ads for at least a week, and companies like Carlsberg and General Motors are taking the same tack.
The bigger picture: Born to be blue.
One bright money-raising idea of Muskâs is to charge $8 a month for perks like fewer ads, boosted tweets, and the little blue verification tick that appears next to usersâ handles â a badge of honor that used to be the preserve of high-falutinâ celebs, politicians, and journalists. But the planâs not without issues: for one, it could ironically make it easier to impersonate people, with any paying, fake account suddenly rubber-stamped in blue. And for another, it could create a potentially ugly divide between those who can and canât afford the fee, amplifying paying usersâ voices over everyone elseâs. | 