The chaos continues to rage at Twitter 2.0 The company is in the midst of a major change, as the company closing many offices around the world as the new Twitter director Elon Musk is continuing to reduce costs as a way to put it back on the a financial course.
Based on reports in the last few days, Twitter has either closed or forced to shut down the offices it has in Hong Kong, the Philippines, Mexico, Africa, Australia and South Korea. Twitter has also closed certain headquarters within Europe and India as part of a broad range of actions.
Some of the employees working in these offices has been sacked, but some are being asked to work from their homes in some offices, and other offices have been closed because of not paying rent, as the new Twitter management team is working to improve the company’s policies.
One of the offices which is Twitter’s Asia-Pacific headquarters located in Singapore is operational, following it was discovered that the Twitter 2.0 team has met the rent due. It’s important, considering that although Elon Musk has been focused on the impact of Twitter’s presence on the US (at at least in his public communications) however, the majority of Twitter’s growth in the last few years has been based in its Asia Pacific region, with India specifically being a key focus for the company.
In this context, the closures of Twitter’s offices in these markets could be especially significant, as local representatives frequently serving as a crucial link to local ad market, content changes, political trends, and so on.
As Twitter looks to reduce expenses, these closures may eventually result in a decrease in revenue however it’s difficult to determine which one will have the biggest impact on the bottom line of Twitter.
According to Business Insider Prior to Musk’s takeover of Twitter, Twitter previously had offices in more than two dozen of the biggest cities across the world including Paris, Madrid, Berlin, Manila, Mumbai, and Jakarta. Twitter also had approximately twenty offices within the US.
It’s now planning to shrink its office space to a select few cities which include those in the San Francisco head office (where it also was recently refusing to pay rent), New York and LA and overseas outposts with offices in London, Tokyo, and Dublin.
That, in turn will drastically reduce operating expenses, however its wider effects on the business could ultimately outweigh the advantages.
In an age of post-COVID, where people are comfortable with video calls and working on the internet perhaps local offices aren’t as crucial as they were in the past and perhaps Twitter could use this opportunity as a method to lower costs and get back on the right path.
That is why it urgently needs to be corrected.
Following his takeover of this app Musk declared the app was losing $4 million per day. Twitter had been operating at a loss of $4 million every day due to the huge costs and a limited amount of users. Musk has since sought to establish new ways to help the app earn more money, such as the 8 per month verification plan as well as eliminated approximately 75 percent of the employees of the company as well as Musk continuing to sift through the number of employees whenever it’s possible.
It’s a good bet that that in all likelihood, it will result in negative consequences. It’s impossible to cut thousands of employees without problems arising or even losing market share in the local market. However, Twitter is still running and no one would be able to speculate on Musk’s failing regarding this, given the accomplishments he’s had in his other businesses.
Perhaps, if Musk is able to get the right people on board, and implement the right method He can reduce the negative effects while reducing the cost of the app in the direction of the future of the app.
Maybe. Many of these effects are likely to increase with time, which means that maybe in the moment the only change to the bottom line of Twitter that is great news to Musk and Co. in their quest to improve the business.
However, in the future, new issues could arise and these could turn out to be more expensive than the savings that are immediate.