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What Elon Musk's Cost-Cutting Initiative Means for Twitter

Figure 1. Elon Musk's Twitter profile is seen on a smartphone placed on printed Twitter logos in this picture illustration taken April 28, 2022. Retrieved from

Since taking over Twitter in 2021, Elon Musk has been on a mission to reduce the company's costs. His team has identified areas where cuts can be made and implemented a "zero-based budgeting" mandate that requires employees to justify any spending.

The cost-cutting measures have included layoffs of at least 50 employees, as well as reducing infrastructure costs by $1 billion. In addition, Musk has reportedly refused to pay vendors and asked employees to bring their own toilet paper to work.

Figure 2. Brain computer interface – the rising adoption of wearable medical devices. Retrieved from

These cost-cutting measures have had an effect on employee benefits, with Twitter reportedly cutting back on perks such as free food and transportation reimbursements. Despite these changes, Musk believes that the cost-cutting drive has averted a potential $3 billion shortfall for the company.

It remains to be seen whether or not these cost-cutting measures will be successful in the long run. However, it is clear that Musk is determined to make Twitter profitable and reduce its costs in order to remain competitive in the tech industry.





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