- Elon Musk’s Twitter takeover in October 2022 resulted in huge layoffs and several changes in the Twitter platform. People worldwide are discussing the uncertain future of Twitter under Elon Musk.
The Future of Twitter:
- After taking over Twitter, Elon Musk fired nearly half of Twitter’s 7500 employees. After that, he gave an ultimatum to the rest of the employees to commit to the hardcore work environment or leave. Many employees rejected the ultimatum and resigned from the company. As more and more people are now preferring work-life balance, if Twitter continues this decision, its future will be bleak.
- Before Elon Musk’s takeover of Twitter, there was strict moderation of content on the platform to maintain the quality of content. But now, most of the employees in the content moderation team are fired because Musk is of the opinion that the move will encourage free speech. But, it resulted in the rise of fake information and hate speech on the platform. As a consequence, several users are leaving the platform. If this continues, Twitter may not survive.
- Twitter’s majority of revenue comes from advertising. Many companies are pausing or removing their ads from the platform, because of two reasons. One is, companies will market where users are and no company would like to associate themselves with misinformation and hate speech. As of November 2022, half of the top 100 advertisers have pulled out their ads from the platform. Without the income from advertisers, Twitter will not be able to repay interest on loans and thereby can go bankrupt.
- Musk announced a new Twitter Blue subscription service, which allowed users to pay $8 per month for blue tick. This move resulted in a huge number of fake verified accounts impersonating celebrities and companies. For example, some people have set up accounts in the name of Elon Musk and Tesla causing confusion among users on which are the real accounts and which are the fake ones. So, the paid blue tick service was temporarily stopped. Musk announced that the service will be resumed with modifications soon. If the problem of fake verified accounts is solved, the situation of Twitter will be better. But the main challenge is making the people continuously pay for the service. When there are many alternatives available to reach the audience, will people really pay to engage with their followers?
- But we cannot say that Twitter will not survive. Mistakes are common in businesses. Moreover, several companies are downsizing, not just Twitter. Musk’s decisions may result in the launch of new innovative products by Twitter Inc. with a smaller staff. Even before Musk’s takeover, Twitter was struggling financially. Since its launch in 2006, Twitter has had only two profitable years – 2018 and 2019. So, there is a possibility that Elon Musk’s decisions to cut costs may make Twitter profitable.
Ever since Elon Musk took over Twitter, the company is in the news for huge layoffs and the rise of fake information on the platform. Twitter lost key advertisers affecting its main source of income. The decisions taken by Musk are making us wonder whether Twitter is on the verge of collapse. Either Twitter will die slowly or it will be turned into a profitable company with a smaller staff.
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