Purchase Twitter for 44 billion dollars. He inherited a company that had not turned a profit for eight of the past 10 years. They were having trouble attracting new users. They're having trouble the revenue now that it's a private company, but analysts have been able to piece together an assessment from the company's last regulations and Musk's public statements. S P Data showed that Twitter had less than 600 million dollars in net debt before the Takeover talks. Now post acquisition, they have 13 billion dollars in debt, and that's a major burden on their shoulders. The company last year generated just over 630 million dollars in operating cash flow. While this new debt could potentially swell its interest payments to more than one billion dollars a year, that's a lot of money that they have to pay down with cash. And where are they going to find that cash? Just one week after taking over, the company suffered a massive massive drop in Revenue and was losing over four million dollars a day. The Journal has reported that a number of big advertisers analysts have pointed to this you know, being a significant decline in Revenue as major companies leave over concerns over what's the the future of the business model. What's the vision under Musk to make ends meet. Musk has moved quickly to slash cost chat including country company staff. by half chat chat why is everybody plugging watching filings showed Twitter had 5 500 full-time employees at the end of 2020 and 7500 a year later. based on the company's most recently disclosed median pay figure. The layoffs of about 3 700 people could save Twitter roughly 860 million dollars 15 of Twitter's 5.57 billion dollars in costs and expenses Last year, Analysts have noted that this could do more harm than good because some of the companies, engineers and developers and marketers are heading out the door. The billionaire owner has also been trying to add subscription Revenue with the Twitter Blue Service users a blue verified check mark. If they pay 7.99 a month, it's unclear whether there's enough demand for that People Living Jobs subscription revenue is potentially a new outlet. I Generally think with every with big emerging tech companies, there's going to be a lot of bad weeds in your Uh Workforce because of uh, just just how it is. This is my own opinion. Okay, and and there's a lot of survivorship bias, result based analysis. and you think that everybody's good at their job because the company successful overall, right? But I think it's very important in these in these times to make a layoffs for people that aren't actually good and it's okay to to downgrade and and start from another. Point Break It Down Restart. That was it. Older people are losing jobs. Okay, that's that's the real world. People get hired for a job. Maybe they're giving me. they're not. After some after long it loves a lot of analysis. They get fired. they get another job on to you. What? What Do people feel like? People are entitled first of their entire life regardless of their performances. A new opportunity to make up for the revenue that's been lost amid the recent Advertiser accidents in an all hands meeting with Twitter staff on November 10th. Musk warned that bankruptcy is a possibility for the company analysts and academics. It's a competitive world of capitalism. Okay, you get paid for a service. You get paid for something not good at it. You might get you might, you might get lit off and you might run out of a job. It happens. Okay people say, oh, I'm loyal to my company. No, you are not. You're lying. You shouldn't be loyal and you're not. And they're not loyal to you either. Okay, do you do You really think that if the company is having problems paying their bills and they're like yo, dude? What? I Mean really, we're having some troubles right now. Man, are you loyal I Really Think a half half your, uh, half your salary and continue working for us realities? You know what we're gonna say? No, no, because you know what. you're worth it. And you know what happens when they have to cut costs, right? You know what we're gonna do. They're gonna fire you. That's it. You want to. Service Done. You can do that service. You're done it. That's just how it works. There's no loyalty in business. That's it. Stop being a loyalty. Stop being loyal to companies and employers. They don't give a about you don't give a about them either. Boom! These Financial challenges continue to mount. There could be other options he could raise Equity Uh, he could buy back debt from lenders, potentially at a very deep discount in the event that the company does going to. Banks The more loyal you are to companies and businesses, the more of a liability you are to yourself. This is not Musk's preferred option and that likely means that those funds will be entirely wiped out. Um, what direction? Hello Felix Try making your own World Cup Bracket Predictions Healing Pac-Man Monday In the life of Twitter employee, welcome to a day in my life as a Twitter employee! So this past week went to SF for the first time at a Twitter office badged in honestly took a moment to just soak everything in. What a blessing! Also started my morning off with an iced matcha from the perch. Then I had a meeting so it's quickly scheduled one of these little pod rooms which were so cool they're literally noise canceling. Took my meeting got ready for a bunch look how delicious this food looks! Oh my goodness! I was so overwhelmed then made my way down area. I don't know what this is but it was really cool. quite simply smell with my friends to kind of unwind a bit. Um also found this really cool meditation room that I thought was super neat. um I didn't do any yoga but they have this so when do they go to the computer I also thought that was really cool. Um had a couple more meetings in the afternoon. Had a ton of projects that we needed to knock out. Say hi to 18. Um, went to the went to the library to kind of get some more work done. Obviously had to have our afternoon coffee so made some espresso and then before leaving for the day I had some red wine on that's on tap. went up to the rooftop and just honestly enjoyed the beautiful. When did it work? So awesome trip! Okay so everybody's talking about my takeover of Twitter and how I fired a lot of people I feel kind of bad but it was actually funny how it happened I was walking around I saw people just sitting doing nothing I was like Hey guys so what do you do? they didn't have an answer so I just fired them so everybody's talking about set up the meme. sounds fun after me dude. Okay, that's the joke. Ah, Stay woke Sonic close with HQ Entire closet full of secret closet of hashtag work. the t-shirts I could tell it was kind of weird but I don't know things and there's an entire well even. it was true. Uh true. it's her closet full of secret closet of hashtag. What is that Stay woke you know that is chat. Do you like black and white? Arizona Iced Tea It is. Cheers! My friends of hashtag work the t-shirts here. we are. uh, it's political left cool and they have some right? Hey, Tesla's almost I could be uh okay. interesting. but what is this? This looks like some fake scared of some Mr Dunson cringe now watching it. Okay, 49 making excuses. Oh, even if we go to the office, we won't actually be in person with everybody because we have multiple offices and in reality we're still gonna have to get on calls to really get everybody in the same team to really like. you know, actually talk about an issue. So really, we're never gonna really be in person. So why are we going back to the offices? Cause I'm paying. You get to work Jesus most privileged country you paid a a check. This is a good video. When does it come out then Israel I've had to make in in the 18. Amazon Meta Netflix White Big Tech is making massive layoffs dude. Dude, years of running the company company-wide announcements from Tech CEOs have all had similarities. recently. This is a very difficult Amazon is preparing to lay off up to 10 000 workers. Meta is cutting 11 000. Netflix has made big cuts so has Shopify snap Twitter Well, maybe that's a unique circumstance. Here are the macro and micro reasons why the tech industry is seen: massive layoffs right now. Picture it. Silicon Valley 2019. these three major tech companies revenues were growing steadily as everything moved online and their number of employees was also growing. Love it! To the guests, everything's growing. it's full of them ahead everybody. Juice It Up Massive employees evaluations are out the Wazoo everything's crazy and then the other things are profitable and they're losing money and they're never going to get there and they're going to get the Productions of of a runability. so they make layoffs in order to get there somehow. And of course, the Pandemic hit people began shopping from home, binge watching, and just generally being online more. Not only did the revenues of many of these tech companies Skyrocket but so did their head count. I Think Amazon is the quintessential example here. If you're promising two-day shipping, you have to deliver two-day shipping. Amazon In response, just had to hire many, many more people. Not only did Amazon grow its delivery operation, but it also grew from its web services. companies and businesses that might not have been online before now had an online presence. You have to host that data somewhere And so Amazon Saw their cloud computing service do very well during the pandemic. Revenue Stayed High through 2021 and many Tech CEOs thought the growth would continue at the same rate they had seen for the last two years. We're going to continue to invest, invest aggressively into the growth opportunities that we see. So they continued the hiring spree and not just a lot of employees, but some expensive employees. This is you covet. Major Twitch Account: We're talking about the role. What do you do? What are you talking about? I Was speaking before getting started because this is also when the talent war is ramped up where companies were: Vine for in-demand employees Facebook Launching the Metaverse is a prime example. From now on, we're going to be Metaverse first, not Facebook First, we saw about a hundred or so people leave Microsoft for Meta and some of these people who left the company said that they were being offered double their salary. but by 2022 consumer habits had changed in a big way. People were no longer stuck inside. Netflix saw a drop in subscribers For the first time decade, people began spending more of their money on services and less on Goods Revenues for many tech companies started to stall or even decline for the first time. Some of these CEOs sort of overestimated where that new Middle Ground Ed which is why they're explaining while apologizing that they grew too fast. Each tech company has also faced distinct problems. a major one: Apple's privacy change which required apps to ask users if they wanted to be tracked. It affected a key component of many of these social media companies digital ad focused business models. Add in the threat from Tick Tock taking away viewership from other social media platforms when you have all these things happening at the same time. I Think that's what really did it for these companies and put them in. The bigger companies aren't outliers either. Layoffs have been happening across the industry throughout 2022, but have recently surged. But even though these are a lot of layoffs 11 000 these are not shrinking back to pre-pandemic levels. Meta's layoffs will bring the number of employees to about here. Amazon's to about here: Netflix Brought the employee account here. To be clear, a lot of these companies are still growing. It's just that the growth is slowing back to sort of pre-powered w Apple Early pen CEOs Also say the timing has to do with the threat of an economic downturn. Well, there certainly have been a lot of changes very quickly in the macroeconomic environment. We're in a very rapidly changing economic environment, because actually, they had to make layoffs. They wouldn't do them like are you okay. In some ways, these layups are a bit proactive. I Mean some of them have said we're doing this now so that we never have to do. oh the uh. the the perfect layoffs, while concentrated in the tech industry, are still a lot. Tens of thousands of people For a lot of people. This reversal and these layoffs are something that they've never seen before. The tech industry had the exceptionally pronounced experience of growing during the pandemic and now Wow. Said nothing. This. It'll just just literally presented things that I think people know and then they didn't go above them. Ah man, you're dumb as I yo this is X x on this video I'm going through my voice as well. that is anyone knows that boy I don't know. He's just so soy. Anyone knows that boy I don't know, he's just so sorry.

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