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Most of Twitter's costs are personnel costs; hence the layoffs fiasco

November 26, 2022
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Strategy | Business Models | Tech

According to the recent quarterly filings at SEC for the period ending on 30th June and what happened in the meantime Twitter might be already on profit.

 


most of Twitter's costs are personnel costs


 

So, the workforce was cut in half (ie. 3750 from 7500; probably the layoffs will continue). Now, looking at the costs categories, we can make some decent assumptions:
1/ Cost of revenue – around 20% cost of personnel
2/ R&D, Sales & Marketing, Gen & Admin – 80% cost of personnel

With a cost of 200k per employee (e.g. including office related costs) we can easily reach $750m in savings. Let’s hope that the revenues will remain the same, although I’m not that sure…

Anyway, all tech companies are watching Elon’s experiment closely because if it will not kill Twitter his “management model” might be applied to other tech companies too.

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