Re:Twitter Plans Hundreds More Job Cuts as Soon as This Week
by enraged_camel on Tuesday October 25, 2016 @02:33AM
(#12785767)
I think they have good revenue, but their insanely high expenses (coming mostly from the high number of employees, but probably other things that assume hyper growth too) make it impossible to turn a good profit.
Re:Twitter Plans Hundreds More Job Cuts as Soon as This Week
by dbbk on Wednesday October 26, 2016 @05:52AM
(#12795172)
They have just under 4,000 employees and spent $2.7 billion last year. Surely that can't be just it?
Re:Twitter Plans Hundreds More Job Cuts as Soon as This Week
by artursapek on Tuesday October 25, 2016 @01:12PM
(#12789679)
I think if Twitter settled down and optimized they could probably be making a healthy profit. That's sort of what I was getting at in my OP.
The short answer? Because they don't make money.
I guess it's possible you could grow your company to a point where you say "Okay, we've filled our niche. Growing more doesn't make sense, so we'll just extract as much cash as we can."
The problem is you have to make money to do that. Twitter doesn't make money and never has. They can say "Well, we're still growing, and that costs money, but at some point we'll monetize that growth and make tons of money," but it's only credible as long as they're growing.