I think the real question is: Twitter grew 3x on the headcount front with a flat stock price over the course of less than 5 years. What exactly where these thousands of employees actually doing and why did the previous CEO think what they were doing was worth hiring them for? That's just basic accountability from a stock holder or employee perspective. That's apparently a ton of money being wasted on nothing at all.
Twitter used to experience significant downtime compared to all other major platforms and one of the reason was its lack of redundancies across everything. Headcount is one such thing and it takes manpower to automate infrastructures as discussed in the post. Sure, you can run the platform with 1/10 headcount with significantly degraded user experiences (say ~98%). This is not a problem for startups but people usuall…
What Twitter is doing is to scale down first, focus on the product, and once it gains traction, it definitely can scale up again. I don't think it will hurt the product very much.