4 ms·

Half of Twitter employees number 3,700 and if on average they make $100K then that's $370 million off Twitter's expenses. Does anyone know if that would make th

Half of Twitter employees number 3,700 and if on average they make $100K then that's $370 million off Twitter's expenses. Does anyone know if that would make them profitable if current revenue doesn't decline?

mc32 4y ago
Total cost per employee is likely double their salary figure. Also the ave. salary is going to be way more than 100M/yr/employee. [M as in the Roman numeral M]
- cbtacy 4y ago
  Ummm... no. Fully burdened costs is total cash comp plus between 25% and 35% as a general rule in the US.
  - deleted 4y ago
    [deleted]
  - tqi 4y ago
    A general rule in the US, not in tech. If you look at most tech salary data points[1], equity and bonuses will often be an additional 50%-70%. Your estimate[2] likely only factors in the cost of benefits and employment taxes. [1] https://www.levels.fyi/ https://www.levels.fyi/ [2] https://web.mit.edu/e-club/hadzima/how-much-does-an-employee-cost.html https://web.mit.edu/e-club/hadzima/how-much-does-an-employee...
- imron 4y ago
  > Also the ave. salary is going to be way more than 100M/yr/employee. I find that very unlikely! (but that’s because you made a typo)
  - deleted 4y ago
    [deleted]
modeless 4y ago
The average has got to be a lot higher than that and you should also include taxes and overhead for another 50%. Edit: Twitter median employee compensation is $232,626. Assuming they do fire 50% and that's the average of fired employees plus 50% tax and overhead that would come to about $1.3 billion per year. https://www.bloomberg.com/graphics/ceo-pay-ratio/ https://www.bloomberg.com/graphics/ceo-pay-ratio/
chii 4y ago
> if on average they make $100K if you only count tech people, this is too low. If you count all employees, including people paid to review posts or moderate, or handle customer reports etc, it might be too high an estimate. So if you fired half, which half? If it was the tech employees, i think twitter would save a lot more than your guess, and if it was just the support/moderators, it would not save much money at all imho.
mullingitover 4y ago
Twitter lost ~200 million last year on ~5 billion revenue. With this purchase, the company is burdened with an additional 1.2 billion in interest expense on Elon's loans. Elon would have to fire something like 400% of their workforce (with no resulting loss in revenue) to dig himself out of the hole just from the added interest payments he's on the hook for.
- Proven 4y ago
- europeanguy 4y ago
  Can someone explain to me how is it possible that a person takes out a loan, but then a company that the person owns is responsible for the loan?
  - everfrustrated 4y ago
    Welcome to capitalism for the rich
  - tppiotrowski 4y ago
    Maybe Elon is still responsible for the loan but maybe Twitter is the collateral. If he fails to repay the loan, the bank seizes Twitter assets but Musk's personal wealth is untouched. Similar to how LLC's shield their owner from being financially responsible.
zeroonetwothree 4y ago
It looks like their average reported pay is $273k
- tppiotrowski 4y ago
  How did you calculate this?
resoluteteeth 4y ago
Assuming revenue stays the same, that would bring them close to profitability as long as you don't consider the loans Elon took out on the company's balance sheet. If you do, they would still be massively unprofitable.
wongarsu 4y ago
$370 million would have made the difference to make 2021 profitable. But now Twitter owns some of the debt incurred to purchase Twitter, adding to their expenses

mc32 4y ago

Total cost per employee is likely double their salary figure. Also the ave. salary is going to be way more than 100M/yr/employee. [M as in the Roman numeral M]

cbtacy 4y ago
Ummm... no. Fully burdened costs is total cash comp plus between 25% and 35% as a general rule in the US.
- deleted 4y ago
  [deleted]
- tqi 4y ago
  A general rule in the US, not in tech. If you look at most tech salary data points[1], equity and bonuses will often be an additional 50%-70%. Your estimate[2] likely only factors in the cost of benefits and employment taxes. [1] https://www.levels.fyi/ https://www.levels.fyi/ [2] https://web.mit.edu/e-club/hadzima/how-much-does-an-employee-cost.html https://web.mit.edu/e-club/hadzima/how-much-does-an-employee...
imron 4y ago
> Also the ave. salary is going to be way more than 100M/yr/employee. I find that very unlikely! (but that’s because you made a typo)
- deleted 4y ago
  [deleted]

modeless 4y ago

The average has got to be a lot higher than that and you should also include taxes and overhead for another 50%. Edit: Twitter median employee compensation is $232,626. Assuming they do fire 50% and that's the average of fired employees plus 50% tax and overhead that would come to about $1.3 billion per year. https://www.bloomberg.com/graphics/ceo-pay-ratio/ https://www.bloomberg.com/graphics/ceo-pay-ratio/

chii 4y ago

> if on average they make $100K if you only count tech people, this is too low. If you count all employees, including people paid to review posts or moderate, or handle customer reports etc, it might be too high an estimate. So if you fired half, which half? If it was the tech employees, i think twitter would save a lot more than your guess, and if it was just the support/moderators, it would not save much money at all imho.

mullingitover 4y ago

Twitter lost ~200 million last year on ~5 billion revenue. With this purchase, the company is burdened with an additional 1.2 billion in interest expense on Elon's loans. Elon would have to fire something like 400% of their workforce (with no resulting loss in revenue) to dig himself out of the hole just from the added interest payments he's on the hook for.

Proven 4y ago
europeanguy 4y ago
Can someone explain to me how is it possible that a person takes out a loan, but then a company that the person owns is responsible for the loan?
- everfrustrated 4y ago
  Welcome to capitalism for the rich
- tppiotrowski 4y ago
  Maybe Elon is still responsible for the loan but maybe Twitter is the collateral. If he fails to repay the loan, the bank seizes Twitter assets but Musk's personal wealth is untouched. Similar to how LLC's shield their owner from being financially responsible.

zeroonetwothree 4y ago

It looks like their average reported pay is $273k

tppiotrowski 4y ago
How did you calculate this?

resoluteteeth 4y ago

Assuming revenue stays the same, that would bring them close to profitability as long as you don't consider the loans Elon took out on the company's balance sheet. If you do, they would still be massively unprofitable.

wongarsu 4y ago

$370 million would have made the difference to make 2021 profitable. But now Twitter owns some of the debt incurred to purchase Twitter, adding to their expenses