Musk and friends compare Twitter to other tech companies and see that it's ratio of employees to revenue is lowest. He therefore thinks he must halve the number employees and/or increase revenue to get this ratio up. From the chat log exhibits from the Twitter vs Musk case: https://danluu.com/elon-twitter-texts/#47 A VC (Jason Calacanis) does back of the envelope calculations: Twitter revenue per employee: $5B rev /…
It would be nice if revenue and employee count were completely independent. Heck, you could fire everyone except one person and have an incredibly high ratio! (Don’t fire that last person or else you’ll get a divide by zero error.) Interestingly, he’s already tweeting out complaints about a massive drop in revenue. His theory is that this is caused not by his erratic behavior, but instead by activists who hate free s…
More succinctly, Musk performed an activist takeover.