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Here are Twitter financials for the last year. Revenue $5,078 (in millions) Cost of Revenue $1,798 35.40% Sales and Admin $1,760 34.67% R&D $1,247 2

Here are Twitter financials for the last year. Revenue $5,078 (in millions) Cost of Revenue $1,798 35.40% Sales and Admin $1,760 34.67% R&D $1,247 24.55% Interest $52 1.02% Unusual Items $441 8.69% Their biggest expense 34.40% is "Cost of Revenue" followed by "Sales and Admin". For a company like twitter "Cost of Revenue" includes operations and Customer Care. I don't think that they can cut 75% at once, just the severance payment will be huge and they may not have the money for that. With R&D being only 24% it is possible to make large cuts in "Cost of Revenue" and "Sales and Admin" and keep more of the engineering team.

lapcat 4y ago
> I don't think that they can cut 75% at once, just the severance payment will be huge and they may not have the money for that. What if the plan is just to scare away as many current employees as possible now, before the deal is completed, thereby minimizing layoffs? I know a lot of engineers who have already left, but the prospect of a 75% cut may inspire more. Heading into a possible/probable recession, it may be wise to secure one's next job immediately rather than waiting for the axe to fall.
- datavirtue 4y ago
  Ha ha...watch them unionize real quick.
- rexstjohn 4y ago
  You are correct. If you lay them off there are lots of expenses. If you scare them off then they will leave for free. He is attempting to shake the tree before taking over on purpose.