Another question is how much advertising Musk has lost. Any figures estimated outside the company are a guess. He can afford to lose tens of millions of dollars, even if that money does not come back.
Many tech companies have chopped costs recently. Some of these cuts are as high as 20%. Management at these firms believes they can sustain revenue at current employee levels. Musk’s cuts are larger, but are part of an industry trend.
Outsiders worry Musk has slashed essential employees. Time will tell. And Musk has some control over his employee base. Many need paychecks. Not all can simply walk out the door with no income. This means Musk has some leverage over who stays and who leaves.
Users of Twitter have no alternatives. Smaller social media platforms like Hive and Mastodon have gained a few million subscribers. That does not make them competitors at all.
Twitter’s most important users have not left, with few exceptions. CBS is the only major media entity that has criticized Musk to have dropped off. Millions will continue to turn to Twitter for breaking news. Most major celebrities and politicians remain on the service because they cannot reach tens of millions of people any other way. Twitter’s most important users have not abandoned it.
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