Can the company survive that? If the remaining team is over worked or feels like they are not respected… what would happen if they all left en mass?
I greatly over-simplified the answer but this topic is worthy of a book.
Most teams need about 10% of staff for skeleton maintenance. You can last a little bit with one staff to restart things as they go, but you'll have a quick degradation of service. If certain microservices fail, it may be the advertizing not working right or something failing with billing or moderation or some other internal tool, but a user might just notice that something is slightly wonky.
However, you won't be able to change much at that point. Changes become exceedingly difficult because of the maintenance overhead.
When they need someone to fill a specific role, they will no doubt go to the nearest consultancy and spend 5x as much on temporarily filling the role.
Or... rehire the same roles on a lower salary.
I think the real issue is that without heavy content moderation it'll quickly get overrun with spam. A great example is to go find an abandoned subreddit and see what bad shape it's in.
1. Layers of management and organizational dynamics push up the number of people. There is a correlation between the number a manager manages and his status in the company. The larger the team - the larger your budgets are - the more important you are. Internal goals (to rise in the organization) override external goals (sell and generate profits). When owners are leaving the company or have already cashed out, their motivation to keep financial discipline is lowered and management quality decreases. Owners differ from the hired managers because they prioritize external goals (sales, profit, long-term company health) not their own personal employee goals.
2. There is a strange fallacy that when you get your VC capital you need to increase your headcount to be perceived as a "serious" company. If you are 10 people working remotely you won't be able to ask for the same valuation in your second or third round as a "looks like a big company" startup with an office and 100 employees. Investors would push (sometimes inadvertenly) founders to grow personel at higher rate, because investors sell the company to other investors. They package the company to exit, they don't care that much about sales and profitability except as a baseline numbers for the next round valuation. I've seen this several times.
The contrapoint is that Instagram had 13 people when it was sold to Facebook and Whatsapp had around 40 people.
Twitter has 7500 employees. There's got to be a lot of layers of management, processes that can be removed from the company. For Elon, fixing cashflow now is more important that keeping everything working smoothly. It works smoothly to generate loss every quarter. It's easier to cut the losses than generate revenue. It makes perfect sense.
[0] https://s3.documentcloud.org/documents/22186683/twitter-whis... page 28
Yes, unless the folks in charge are incredibly incompetent.
> what would happen if they all left en mass?
For Twitter, that is an "...if a giant asteroid vaporized San Francisco" fantasy scenario. The remaining workers are not a clone army, and vary in all sorts of ways. Including what it would take to convince them to leave ~immediately. Elan has years of experience leading very large, technology-oriented companies - he is quite aware of the wide, grey optimization zones around "be very demanding of and difficult with your employees".
It's messy but there are pretty straightforward levers to pull.
The way we engineers build systems is to have a solid core and then a lot of fancy cruft to handle the constant stream of inevitable changes that bring in new features or update stuff. Take the changes away by removing people who’d roll them out, and you have the core running as it was designed to do.
I believe when the remaining engineers or the new ones(if they will be..) start rolling out changes is when shit will break and make the whole thing wildly unpredictable.
Also, I don’t think the majority of people even work on core products.. for example, did you know Twitter implemented their own OnlyFans competitor? It never launched afaik
Step 1 is to trim as much as possible and consolidate core functionality…
Step 2 is back to profitability.
I understand that, let’s see if it works
They might slow down but not stop operating
I would be shocked if they actually had a 50% layoff, from the news reports and everything I've seen on social media, it's not that deep otherwise there would be far larger reports of it by now. If it turns out that 50% number is wrong, I think that would really open the eyes of Twitter employees as to how much the media is spreading lies about Musk.
If it turns out the 50% number is true, I'm pretty sure the company won't survive. Having been through layoffs, the rest of the employees of such a huge cut will likely not work or not even care and immediately start looking for a new job because they know they are next. That's not a wise way to run a company, in my opinion.