LOOKING AT EMERGING TWITTER 2.0 THROUGH DIFFERENT LENSES

 

My last post triggered some interesting responses and reactions about Elon Musk and his recent moves at Twitter.

I really think it will be more interesting if we looked at some of these actions or strategies through different lenses, perhaps to understand and learn from this modern-day event.

Personally, it is a learning moment for me to look through different lenses considering the complexities at play. So, feel free to comment as you want and I hope you enjoy the journey.

1. FROM THE LENS OF ELON MUSK

According to the New York Times Company’s Publication By Lauren Hirsch Oct. 30, 2022 - Reference Link

https://www.nytimes.com/2022/10/30/technology/elon-musk-twitter-debt.html 

- Can Elon Musk Make the Math Work on Owning Twitter? It’s Dicey.

- Mr. Musk faces financial challenges in owning Twitter. The site frequently loses money and took on $13 billion in debt for the blockbuster deal.

I believe some of us are familiar with the concept of “Burn Rate” and “Run Way”.

The burn rate is used by startup companies and investors to track the amount of monthly cash that a company spends before it starts generating its own income. A company's burn rate is also used as a measuring stick for its runway, the amount of time the company has before it runs out of money.

So, if a company has $1 million in the bank, and it spends $100,000 a month, its burn rate would be $100,000 and its runway would be 10 months.

Reference & Read More - https://www.investopedia.com/terms/b/burnrate.asp 

Musk has started to dramatically slash costs, letting go of half of the company's 7,400 employees. Overall, he is trying to find up to $1 billion in annual infrastructure cost savings, including from servers and cloud services. In 2021, Twitter had total costs and expenses of $5.6 billion.

Source - https://www.reuters.com/markets/deals/twitters-massive-revenue-drop-adds-heavy-debt-burden-2022-11-07/ 

2. FROM THE LENS OF TWITTER EMPLOYEES

Using Glassdoor to predict total pay in today's job market, along with other types of pay like cash bonuses, stock bonuses e.t.c.

 Twitter Salaries by Job Title - 4,211 salaries (for 930 job titles) Updated 10/16/2022

https://www.glassdoor.com/Salary/Twitter-Salaries-E100569.htm

3. FROM THE LENS OF WHAT IS CURRENTLY HAPPENING WORLDWIDE AROUND LAYOFFS

Carvana cuts 8% of the workforce on slowing used-car demand.

https://www.reuters.com/business/autos-transportation/carvana-layoff-1500-employees-cnbc-reporter-tweet-2022-11-18/ 

Autonomous delivery startup Nuro lays off 20% of its workforce

https://techcrunch.com/2022/11/18/autonomous-delivery-startup-nuro-lays-off-20-of-workforce/ 

Roku to lay off 200 US employees after advertising revenue sinks

https://www.foxbusiness.com/technology/roku-lay-off-us-employees-advertising-revenue-sinks 

Cisco (CSCO) Plans $600M Restructuring, Layoffs of 5% of Staff

https://www.bloomberg.com/news/articles/2022-11-16/cisco-s-sales-forecast-indicates-steady-spending-on-technology 

Amazon Is Said to Plan to Lay Off Approximately 10,000 Employees

https://www.nytimes.com/2022/11/14/technology/amazon-layoffs.html 

SUMMARY - 

Asana, Disney, Juul, Barclays, Redfin, Facebook, Instagram, and WhatsApp parent company Meta, Salesforce, Zendesk, Online financial services company Chime, Rideshare giant Lyft, Stripe, Twitter, Opendoor, Upstart, Zillow - the Seattle-based online real estate company, Seagate Technology, Manufacturing giant Philips, Vacasa, Microsoft, HelloFresh, Beyond Meat, Nevada-based real estate valuation firm Clear Capital, Oracle, Intel, Brex, Peloton, SoftBank, San Francisco-based electronic signature company DocuSign, Wells Fargo, Google, Clothing outlet Nordstrom, Gap, AbbVie, Twilio, Warner Bros. Discovery, Goldman Sachs, Beaumont-Spectrum, which formed earlier this year out of a merger between Beaumont and Spectrum, Citigroup, Credit Suisse, Bed Bath & Beyond, VF Corporation, the parent company of brands such as Vans, Timeberland, and the North Face, Online mortgage lender Better.com, Artificial intelligence startup DataRobot, Tennessee-based trucking company U.S. Xpress, Boston-based online furniture retailer Wayfair, Software company New Relic, Philadelphia-based Audacy, Apple, HBO, Texas-based home health services company Signify Health, Meditation app Calm, California tech startup Nutanix, Fast casual salad shop Sweetgreen, Wix.com, Canadian social media management company Hootsuite, Groupon, Snap, iRobot - the maker of Roomba, California-based video game developer Jam City, Walmart, Online brokerage Robinhood, Fitness company F45 Training, Shopify, Boston tech-watch company Whoop, 7-Eleven, Seattle real estate startup Flyhome, Ford, Vimeo, Ohio-based automated health software startup Olive, Crypto exchange Gemini, OpenSea, ChowNow, Tonal, Tesla, GoPuff, LoanDepot, Rivian, Re/Max, JPMorgan Chase, Compass, and Redfin, Coinbase e.t.c.

Brian Bushard & Carlie Porterfield from Forbes published a comprehensive list here

https://www.forbes.com/sites/brianbushard/2022/11/17/cisco-reportedly-lays-off-over-4000-here-are-the-biggest-us-job-cuts-this-year/ 

4. FROM THE LENS OF FINANCIAL ADVISORS & MANAGEMENT CONSULTANTS

Has the answer changed for the question - Top Line Vs Bottom Line?

Looking at Item 3 above, I want to believe that it has, or better still the answer is changing, or the answer will always remains the same.

The “Bottom Line” is the sacrifice or trade-off for modern-day organizations to stay alive, profitable, or sustainable as the case may be.

Reference on Top Line and Bottom Line

https://corporatefinanceinstitute.com/resources/accounting/top-line-and-bottom-line/ 

https://khatabook.com/blog/top-line-vs-bottom-line/ 

NOW, USING DIFFERENT LENSES WHAT ARE YOUR THOUGHTS?

Thank you.

Aderogba Otunla

#Twitter #ElonMusk

Image Reference - Credit: https://www.maxpixel.net/photo-4340698

Resignations Roil Twitter as Elon Musk Tries Persuading Some Workers to Stay

https://www.nytimes.com/2022/11/17/technology/twitter-elon-musk-ftc.html