Whether or not that works out is not something I can predict, but having more user engagement than ever before is not a bad thing for a platform that makes literally every penny from exploiting user engagement in some way.
I would say that 95% of my professional circle was on Twitter 3 months ago. Today, it feels like less than 50%. Of that same circle, I only know one who paid $8 for Twitter Blue, and he canceled this month.
Outrage-driven engagement is definitely happening. But it needs to happen on Twitter, and in a way that doesn't threaten Twitter's ad sales, for it to be of any value to Twitter.
[1]: https://www.nytimes.com/2022/11/22/technology/elon-musk-twit...
But nowhere does it mention cutting servers.
Twitter has their own datacenters, so this is likely to be peripheral. But we do know they've fired the majority of the staff actually operating those datacenters.