Twitter faces bankruptcy – The Cryptonomist

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The situation was already dire in terms of future prospects when Elon Musk finalized the takeover of Twitter last month for $44 billion through its own finances and those of a pool of investors, but a very hard plan was also ready to be implemented.

“There’s no sweetening the pill on the economic outlook and its impact on an ad-addicted business like Twitter.”

The pragmatic comment of the entrepreneur leaves no doubt, the situation is serious to the point that the path of bankruptcy is not to be ruled out a priori.

Despite the elimination of half of the workforce and almost all of the management, despite early retirements, the change in business model and mode of operation, the situation remains serious.

After the Twitter disclaimer Stock of the New York Stock Exchange, Musk and his team wasted no time trying to secure social and make it functionally better.

Smart work is banned on Twitter

Another desperate move to increase productivity and streamline costs is the recent ban on smart working for Twitter employees.

In a report, Elon Musk explains that working from home will no longer be allowed and will be replaced by working in person for at least 40 hours per week (the normal number of hours for an employee).

Generalizing is never too fair and this Musk does it well so he was quick to explain how each case can be assessed:

“If there are extraordinary collaborators for whom this will not be possible, I will directly judge and approve each case.”

The smart work stoppage is part of a modus operandi of the naturalized South African Canadian entrepreneur and has already affected his other businesses such as SpaceX and Tesla.

The decision is not only peremptory and impactful for the pockets of the social network, but also follows a not too veiled invitation to resign if the employees do not appreciate it.

Reality is knocking at the door

“The economic situation ahead of us is catastrophic, especially for a company like ours that depends on advertising in a difficult economic climate.”

With these words, the You’re here The founder is getting his hands dirty drawing a wrestling scenario in which the way Twitter’s business model has been set up, there will be quite a bit of work to do with the likelihood, albeit small, that the efforts are not sufficient.

In addition to the mega-cut of staff and a large part of the management team, the transformation of the social network looks very much like an open-air construction site which also involves a desire to bet on subscriptions very much like netflix or Amazon.

Under the new owner’s plans, the company is expected to cover about half of its revenue solely from subscription revenue over the coming year, assuming Twitter doesn’t shut down first.

Another major change introduced by the new management of the social network is that concerning the fateful blue ticks.

Blue ticks, which certify that the profile they accompany are identity verified and constitute an important person, will be subject to subscription fees.

The subscription “blue tick” (Twitter Blue) has been placed at 8 dollars per month, and according to some analysts and commentators of the social network, it could promote the opposite result of generate more fake profiles in an easy way.

To date, running a profile under another person’s name is possible, but the rule states that this must be explicitly stated and highlighted, otherwise the profile will be deleted without notice.

The new verification system prepared by the development team of the social platform and soon to be implemented goes in this direction.

“In the coming days, we will be adding granularity to the verified badge, such as organizational affiliation and identity verification.”

That’s the comment from the SpaceX contractor who hints at more thorough checks before issuing badges to users, even if it’s for money.

In clear terms, Twitter is in serious danger of bankruptcy, this is perceived to the point that the users themselves, in some cases, are abandoning the social network in favor of other similar but less emblematic platforms such as Mastodon which is gaining more a million users in the last hours at the expense of Musk’s new acquisition.


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