The Twitter CEO says that the company currently has around 1,500 employees which is “probably a reasonable number.” During Musk's ongoing tenure, Twitter's headcount has been reduced by over 80 per cent, from 7,500 to approximately 1,500 employees. However, he also said that Twitter will soon start hiring people again. Musk said, “Twitter was in a situation where you'd have a meeting of ten people and one person with an accelerator and nine with a set of brakes." "It will eventually come to a head.He spoke about the reason he had to make huge job cuts just after buying Twitter for $44 billion last year. "The Musk antics and controversy are what advertisers don't want," he said. Yaccarino will push the company to strike a balance between permitting a wide range of content on the platform and making the site palatable for major advertisers, Ives said. "The hope was that Twitter Blue would offset the heavy reliance on advertisers, but that just has not even remotely come close to fruition," Proulx said. However, the strategy shift has made little improvement in revenue generated by the subscriptions, while the loss of ad dollars has threatened the core business, Proulx said. Musk has defended his actions at Twitter as part of an aggressive effort to rescue the company from financial peril, which he described in a Twitter Spaces interview in December as an "emergency fire drill." In an effort to significantly slash costs, the company has cut roughly 75% of its 7,500-person workforce, raising concerns about Twitter's capacity to maintain its platform. Meanwhile, many of Twitter's top advertisers, like Coca-Cola and Unilever, stopped spending money on the platform. Since he took over, Musk has sought to rejuvenate the platform's subscription offering, Twitter Blue, as a means of reducing its dependence on advertising revenue. On its last quarterly earnings report before going private, Twitter said last July that advertising accounted for some 91% of overall revenue. MORE: Baked goods prices are rising much faster than overall inflation. When NBC launched its streaming service Peacock in 2020, for instance, Yaccarino led a campaign to offer an array of ad formats, such as binge ads that afterward allow a viewer to watch ad-free as well as ads that include a QR-code directing viewers to a product. Over more than a decade at NBCUniversal, Yaccarino generated more than $100 billion in advertising sales, focusing recently on an effort to coordinate advertising across TV, streaming and online platforms, the company's website said in a profile of Yaccarino that was removed on Friday. Yaccarino, who graduated from Penn State University in 1985, worked in media advertising for about 30 years before being named Twitter CEO on Friday. "He needs an advertising guru front and center leading the charge of Twitter." Who is Linda Yaccarino? "The heart and lungs of Twitter's monetization is advertising and Musk realizes that's not going to change," Ives said. The hiring of Yaccarino, however, suggests a renewed focus on advertising, which accounts for the vast majority of Twitter's revenue, Dan Ives, a managing director of equity research at Wedbush, an investment firm, told ABC News.
0 Comments
Leave a Reply. |