Musk orders Twitter to cut infrastructure costs by $1B

Re:Musk orders Twitter to cut infrastructure costs by $1B – ... by dkjaudyeqooe on Friday November 04, 2022 @11:26PM (#33477561)

If they can, that's great, if not then they're setting up Twitter for bankruptcy, or asset sales, if they have any.

Generally speaking, loading up a company with debt is corrosive to good management. If you have to cover your interest payments each month, and that's hard, it focuses the business on short term survival rather than investing in growth in the longer term.

[ Parent | on HN ]

Re:Musk orders Twitter to cut infrastructure costs by $1B – ... by bagels on Friday November 04, 2022 @11:32PM (#33477603)

Definitely, the debt is a burden. I don't see how it's a waste to save money though. Maybe the cuts are so dramatic it damages the business, but reducing wasted money is generally good management.

[ Parent | on HN ]

Re:Musk orders Twitter to cut infrastructure costs by $1B – ... by dkjaudyeqooe on Friday November 04, 2022 @11:41PM (#33477667)

It's like surgery: making cuts is part of the job, but the more drastic and indiscriminate the more likely the patient dies.

Given that Musk has just arrived, how can these cuts be carefully considered? He burst through the door and started slashing from what anyone can tell.

Even if Twitter is heavily bloated, the cuts may be fatal anyway on that basis.

[ Parent | on HN ]

Re:Musk orders Twitter to cut infrastructure costs by $1B – ... by GoOnThenDoTell on Friday November 04, 2022 @11:42PM (#33477681)

Cutting costs is good, quickly slashing 50% doesn’t seem carefully considered and may cause actual problems.

[ Parent | on HN ]