Science

Chaos breaks out on Twitter as Elon Musk loses billions of dollars to companies and continues to cut jobs

Elon Musk has led Twitter since he became its owner and CEO. This has already thrown the platform into chaos. By introducing an $8 per month subscription that offers account certification without verification, fake accounts have taken advantage of this to publicly harm several large groups. Meanwhile, the billionaire continues to cut jobs.

Not a day goes by that Elon Musk doesn’t speak directly on Twitter. The new Twitter boss admitted he was testing things and it was no joke. Paid accounts, certification without identity verification, double badging, publishing long messages, adding features at the request of your subscribers, Vine refunds, paywall system…

Twitter CEO and new owner Elon Musk has been released. By parting ways with half of its employees and then calling back some, the company prepared the remaining Twitter employees for tough times. He just brandishes the risk of bankruptcy.

Without significant subscription revenue, Twitter is unlikely to survive the coming economic downturn.

In an internal message, he insists on the importance of the new subscription system. Currently, Twitter is 90% funded by ads. So he relies on a new paid subscription. However, the new Twitter Blue, an $8/month subscription also includes a confirmation checkmark, has caused confusion among advertisers.

Trust is undermined

Within hours of the launch of Twitter Blue, many users changed their names to famous celebrities, politicians and athletes, and even Elon Musk. What was most devastating was the fact that some accounts were impersonating companies.

One of the most common cases is that of pharmaceutical group Eli Lilly and Company, whose fake Twitter account tweeted: “We are happy to announce that insulin is now free.” This tweet would have resulted in a loss of approximately $13 billion in market capitalization, or -4%.

Did a Twitter Blue tweet just cost Eli Lilly a trillion dollars?

Yes. pic.twitter.com/w4RtJwgCVK

— Rafael Shimunov on Mastodon (@rafaelshimunov) November 11, 2022

Twitter has suspended the launch of Twitter Blue and reinstated dual badges for some large Twitter accounts. But it is clear that the trust of advertisers is seriously undermined.

By the way, a free extension for browsers based on Chromium helps to better recognize these accounts.

Meanwhile, events on Twitter have sparked a reaction from the Federal Trade Commission (FTC). The role of the US agency is usually described as combating unfair and misleading practices in order to ensure the functioning of a competitive market. FTC spokesman Douglas Farrar told the BBC: “We are following developments on Twitter with concern.” In this context, Twitter could be subject to tough sanctions.

Layoffs continue

For employees and people who work closely with Twitter, Elon Musk continues the massive layoffs. This time, thousands of subcontractors and freelancers are about to be fired. We are talking about removing from 4400 to 5500 contracts.

Update: Company sources told me that Twitter yesterday laid off about 4,400 of its about 5,500 contract employees, with the layoffs expected to have a significant impact on content moderation and the core infrastructure services that keep the site running.

The people inside are stunned.

— Casey Newton (@CaseyNewton) November 13, 2022

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