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Ignoring all the other things that are wrong with this whole situation... if they can make it $1B more efficient, how is it a waste even given the loans? Presum
by bagels 4y ago
Ignoring all the other things that are wrong with this whole situation... if they can make it $1B more efficient, how is it a waste even given the loans? Presumably the plan is to get rid of the debt eventually, and then you'll have a much more financially healthy company, assuming it can actually get $1B more efficient.
- dkjaudyeqooe 4y agoIf they can, that's great, if not then they're setting up Twitter for bankruptcy, or asset sales, if they have any. Generally speaking, loading up a company with debt is corrosive to good management. If you have to cover your interest payments each month, and that's hard, it focuses the business on short term survival rather than investing in growth in the longer term.
- bagels 4y agoDefinitely, the debt is a burden. I don't see how it's a waste to save money though. Maybe the cuts are so dramatic it damages the business, but reducing wasted money is generally good management.
- dkjaudyeqooe 4y agoIt's like surgery: making cuts is part of the job, but the more drastic and indiscriminate the more likely the patient dies. Given that Musk has just arrived, how can these cuts be carefully considered? He burst through the door and started slashing from what anyone can tell. Even if Twitter is heavily bloated, the cuts may be fatal anyway on that basis.
- GoOnThenDoTell 4y agoCutting costs is good, quickly slashing 50% doesn’t seem carefully considered and may cause actual problems.
- afavour 4y agoSeems like a pretty massive “if” there. An extra one billion in efficiency without detriment to the service?