I do however feel that there should be civility in these layoffs regardless of what Musk's belief's about performance of these employees (or Musk fanboi's). There should be proper severance/healthcare and prorated vesting.
Similar stuff is happening with most of the local papers in the country. Although in that case the whole business model is dying. But vulture capitalists are hastening the demise by squeezing every the lifeblood out of the business and destroying what's left of the public goodwill.
Actually it does when large number of houses get repoed. it did happen in 2008. that was because of securitization & rating mistake by banks but that speaks to my point, if the banks have a bad valuation model & give out unservicable loans then they have to eat the loss, just that everybody was doing that in 2007 because of repeal on many laws around such speculation.
this seems to be a similar thing as long as it does not happens to be systematically tilted towards overvaluation but I'd argue businesses (esp public ones) are more closely watched and market does a semi reasonable job of valuing them over time. personally there is not a whole lot of growth left in twitter (or FB) except for changing to a new business model like identity verification or eat into FB's lunch ;-). But as I said we'll see.
"Love to borrow money to buy a company and then saddle that company with the debt so I can lay off thousands of people"
https://twitter.com/jasonschreier/status/1587457450311122945