7,500 employees worked at Twitter before Elon Musk.

$118,000 is the average salary.

885 million dollars in total cost to Twitter.

After Elon Musk, Twitter has a reported 3,700 employees, instead of 7,500.

3,800 employees lost
448.4 million dollars Twitter will not be spending.

Amazing thing though is after all of this, Twitter will still be losing more money with Elon Musk than before.

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Revenue Data Of Twitter

5 billion dollars was Twitter’s 2021 revenue.
221 million dollars was the loss.

If revenue’s stayed the same and the employee loss actually saved money, that’d put Twitter as profitable 227 million dollars.

Problem though is the interest on the debt to buy Twitter.

1.2 billion dollars is the reported interest on the debt Elon Musk has to pay every year for the Twitter purchase.

Meaning even with the change in policies, Twitter will still nearly have a 500% increase in losses, totaling a billion dollars.

There’s obviously the question though if Twitter made 5 billion last year and under 20% of it went to employees, how did they still lose 200 million.

Outsourcing Vs Hiring

Reason is most tech companies don’t have employees as primary cost, due to the enormous amount of things outsourced.

Servers
Cybersecurity
Sales teams
Marketing
Legal

Operating something like Twitter, Facebook or YouTube cost billions of dollars and it’s rarely done in house.

Can Twitter Make More Money?

90% of Twitter’s revenue is ads.
10% is data services, providing analytics to companies, which is also ads.

Elon Musk said Apple has cut advertisements on Twitter, where he’s even gone as far to threaten to launch a Tesla phone.

The auto companies all dropped Twitter ads, granted this is not really political, but just not wanting the competitor to have their data.

Kellogg’s
Pfizer
Mondelez
Chipotle

Gone with hundreds of others.

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Abanding The Ads Over Twitter

It’s reported that half of the top 100 Twitter advertisers have abandoned ads, which in 2022 have made up a total of 750 million in revenue for the company.

This puts Twitter in an issue, where they have 1 billion dollars in added cost, could lay off every single employee to still be 115 million in added losses and now they are likely going to lose a billion a year in ad revenue.

Other revenue sources have been proposed, but not sold if that’ll work.

The $8 Feature

Twitter has attempted an $8 premium feature, which caused a lot of issues providing blue checks. Some Elon fans said that wasn’t about revenue, but it did absolutely nothing to prevent bot accounts, so clearly it was.

Another point mentioned is Elon Musk is telling people he wants to do payment wallets via Twitter, but that seems destined to go nowhere.

PayPal
Zelle
Venmo
WhatsApp
Facebook Messenger

Tons of payment apps exist, with the single largest social network in existence already having payments built into every product offered.

There’s nothing Elon Musk would add unique on the payment side and PayPal, who is the industry leader does well, but even with a 16% profit margin, that is on 25 billion in revenue and literal hundreds of billions in transactions.

Which yes, Elon Musk used to own PayPal back in the day, but that industry has changed a lot, where he ran it in a time the interest was 100% desktop based and now the majority of payments are mobile.

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