Elon Musk has now taken several steps that make advertisers nervous (this step one included). As such, by his own admission, Twitter is now suffering a massive

Elon Musk has now taken several steps that make advertisers nervous (this step one included). As such, by his own admission, Twitter is now suffering a massive fall in revenue. Therefore, such cuts are the very definition of "penny wise, pound foolish." A few more cuts like this and Twitter will go the way of Tumblr (bought for $1.1 billion and sold for $3 million). If your whole business model is advertising then you need to care about the audience that you hope to sell to your advertisers, and if you don't care about that audience, it will shrink, at which point your advertising revenue will decline.