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New controversial informations are leaked, after the fresh acquisition of Twitter Inc. by CEO of Tesla, SpaceX, The Boring Company – Elon Musk
Because of his well known leadership, managing, and very harsh working conditions new contradictions are coming out to the light of the day concerning the new order set up in Twitter San Francisco HQ.
After firing top managers and workers of Twitter Inc. Elon Musk now raised an issue about Twitter’s big expenditure on employees’ lunches. It is stated that Twitter is spending $13 million on food service every year. Ms Tracy Hawkins, a former VP of Work transformation, who ran a food program, stated that Twitter spent between $20-$25 a day per person, so that they can work properly throughout the whole day. She also stated that attendance rate was ranging between 20-50% in offices.
There is a lot of controversy and hate directed to Elon Musk, for taking away ‘free’ food from workers, and forcing them to pay for it. Many people resigned from the jobs right after Twitter Inc. was taken over.
However, I personally do not agree with those statements. Even though Mr. Musk is known for squeezing last juices of their workers, while saving as much as possible, I find his activities very appropriate. During 2021, Twitter generated a revenue of $5 billion, which was an increase of +35% comparing to year 2020 – it was mainly a revenue from advertising. Even though Twitter generated such great revenue, it reported a net loss of $221 million. In 2020 the amount of loss Twitter generated was $1.1 billion.
The real question is….. Isn’t it better to cut unnecessary costs and make such big and good platform actually profitable and successful? In my personal opinion, the approach of Elon Musk is just the right path of accomplishing this goal. Of course, serving a free food in San Francisco HQ most likely was great for the workers, very ethical, as well as it probably gave them an energy to work, which was then put on an overall performance of the company. However, the attendance rate, which former VP mentioned was around 20-50% in reality – was just below 10% (25% was at its highest). Here is Musks response:
It is said that many Twitter workers just prefer to work remotely, which makes the HQ food service even more useless. I highly agree with Musks response, as his reaction to the whole situation. By reducing the food service in Twitter’s San Francisco HQ, the company will not only reduce the amount of wasted food, but moreover, save a lot of money, which could be invested into further development of the company as well as decrease the final loss (and maybe eventually make Twitter Inc. a profitable company longterm).
Evaluating, I think that without Elon Musk and his acquisition, Twitter Inc. could possibly go bankrupt in future, with such losses, which were noted more years than profits. Also, charging workers for food service may bring additional revenue, which the can be invested into lots of other sectors of the company.
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Thank you for reading through this article, before going, I have a few questions which I would love you to answer! Leave a comment and let me know your point of view on that!
- What is your opinion on this whole situation?
- Should a company such as Twitter Inc. provide free food service to their customers?
- How will you see the future of Twitter under Elon Musks’ ownership?
sources:
https://www.statista.com/statistics/299119/twitter-net-income-quarterly/