Three weeks after Tesla co-founder and CEO Elon Musk gained control of Twitter, no one is being tweeted about more than him.
The billionaire entrepreneur cut thousands of jobs at the social media giant, removed the company’s “days of rest” — monthly days off for employees to rest and recharge — and ended the company’s remote work policy.
Reports continue to emerge of even more Twitter employees quitting en masse after Musk told them to either commit to “long hours at high intensity” or leave. Numerous advertisers have also fled, bringing their much-needed revenue with them.
It’s not a good look, and many critics are calling Musk inept or crazy for burning down his $44-billion acquisition.
But the truth is, Twitter is a business and Musk is a very successful businessman. Here are three reasons why Musk might actually know what he’s doing.
1. He may be trying to cut ‘dead weight’
As one of the leading players in its field, Twitter makes big money, but it also has big expenses.
In Q2, the company brought in $1.18 billion in revenue. Its costs and expenses, however, totaled $1.52 billion. That resulted in an operating loss of $344 million for the quarter.
Therefore, it’s no surprise that cost-cutting is on Musk’s mind.
The move might even boost productivity, too.
One Twitter user labeled Musk’s technique “whaling and culling,” with his perspective receiving more than 25,000 likes.