After posting a photo of the company’s logo placed over a headstone on Friday in response to the most recent mayhem to strike Twitter, Elon Musk proved he has no shortage of controversial erratic Twitter storm regardless of how difficult the situation is. After seeing his activity on Twitter, many former employees are confused about whether he is deliberately destroying the company.
Since he took over Twitter last month, Twitter has seen a mass layoff, advertiser boycott, resignation among its remaining employees, and even bankruptcy warnings. We don’t know where the new trend on Twitter- #RIPTwitter and #TwitterMigration is leading the company, but here we will understand the problems from the core.
Developers are leaving Twitter
Twitter is left with 3,750 employees after Musk showed half of the company’s workforce the exit gate in the first week of November. In addition, he ended a very public argument by firing many crucial employees of the microblogging site.
Unknown numbers of those workers quit overnight after Musk gave them a 5 p.m. ET on Thursday to decide whether to accept “long hours at high intensity” and being “extremely hardcore” or take “three months’ severance pay.” 75% reportedly preferred severance, leaving Twitter with less than 1,000 employees.
The departure hurt almost every department of Twitter, including the press team, which means what is going on inside twitter will be nothing but mere speculation. However, the former employees are filling the gap, but it doesn’t make anything official.
Hundreds of Twitter workers indicated their intention to leave before the deadline on Thursday, according to those who still have access to the company’s internal Slack chat system. These employees sent farewell notes, emojis, and other symbols.
Twitter’s former employees took all their anger out on its slackboard, insulting him by writing such things as “mediocre manchild” and “worthless billionaire.”
An employee at Twitter wrote, “As an engineer at Twitter, I can confirm that Elon Musk doesn’t understand anything about our website or coding in general. Not gonna lie, we laugh Really hard about it behind his back. We’ve been calling him “the CEO,” but it stands for Code Efficiency 0.”
Two employees who received the email — one who accepted the severance and one who is still on the payroll- confirmed that Twitter management released an unsigned email announcing that employee badge access would be suspended and its offices would be closed until Monday, with no explanation provided. They agreed to remain anonymous out of concern about punishment.
So, let’s sum up the situation for you; Twitter’s most crucial employees who used to be part and parcel of the company are now gone, advertisers called for a boycott, and developers are resigning. There is so much going on now.
Will Twitter crash?
Since several engineers left in the aftermath of Musk’s ultimatum, it is getting tougher to rule out the possibility of Twitter collapsing completely. The CEO’s persuasion of a “much more engineering-driven” company and “those writing great code will constitute the majority of our team” doesn’t seem to be working.
Following Musk’s firing of around 3500 employees and the resignation of 2000 more, there are now worries that the site may be exposed to technological failures and bugs amid hints that the intricate infrastructure behind Twitter is already creaking. There have been difficulties with retweeting, as well as two-factor authentication.
According to Steven Murdoch, a professor at University College London, Twitter will struggle to handle complex failures; he adds that even if the company hires new employees or retasks existing employees, even with a smooth handover process, learning how the relevant systems work can take months
Furthermore, Peiter Zatko, the previous head of security, warned the company about its poor information security system. He was concerned that Twitter might be exposed to an “Equifax-level hack,” referencing the 2017 attack on a credit that exposed the personal information of 147 million Americans.
The biggest show on earth, the “Fifa World Cup 2022,” starts on Sunday. And Twitter gets very busy during this period when tweet surges heavily, stressing its systems. When Twitter’s trending pages are suffering, and its microservices are constantly being shut down, how the company will cope with these changes is still being determined.
How probable is Twitter’s bankruptcy?
As of now, Twitter is hardly profitable. Its userbase and profit are nothing compared to Facebook, Tiktok yet, nobody could ever believe the company could go bankrupt until Elon Musk took over. He said bankruptcy might be inevitable if Twitter doesn’t make more money.
Musk settled the valuation at $44 billion to take the company private. He crashed into some of his Tesla stock and saddled Twitter with $13 billion in debt. For context, the debt equals about seven times the company’s projected earnings for 2022. It’s like a massive credit card with a $1 billion annual payment. That’s a concern for Twitter, given that its cash flow for debt payments was only $632 million last year.
We’re still trying to understand why Musk paid a vast amount to buy Twitter. Investment firm Wedbush Securities labeled the takeover as one of the most overpriced acquisitions in the tech industry, estimating that Twitter is worth not more than $25 billion.
Musk’s being stubborn as a mule, and the fact that major advertisers, which contribute 90% of the profit, such as Pfizer, United Airlines, and General Motors, stopped advertising on the platform amid the chaos is now throttling the company.
What can Elon Musk do now?
According to Andy Wu, an associate professor at Harvard’s business school who has researched Elon Musk’s takeover, Musk may hypothetically use more of his Tesla shares to bail out Twitter or seek support from his cadre of co-investors, who would almost certainly have no problem finding the money.
But considering the fact that Twitter is in $13 billion debt, those investors might turn back, and in that situation, Musk would have no choice but to file for bankruptcy.
If Twitter goes bankrupt, lenders and investors will take over the company while Elon Musk serves as its chief executive. It will allow him to refinance the debt and stabilize the company.
The billionaire gambled everything — from tesla stock to employees’ well-being. A company is run by people, and their well-being is as important as profitability as they are the ones who build a company from the ground.
Before Musk took over the company, Twitter used to be a place that was deeply cared for and loved by its employees. Currently, the company is left with a leader with insane ambition and employees who can work to death.
Many say that he shouldn’t have taken developers like they are some random strangers because it can backfire, as developers now have little faith in big companies like Meta, Amazon, and Twitter. We don’t know how this combination will work and what is written in Twitter’s fate. But when was the last time Elon Musk failed to surprise you?