TWITTER

After a lot of drama and chaos, Elon musk finally bought twitter on 28
october,2022. Musk began his innings at twitter by firing the CEO Parag
Agrawal and the CFO Ned Segal. He then dissolved the board of
managing directors giving him sole power and followed an exodus of
top management. Musk then ordered mass layoffs slashing almost half
of the workforce with little notice. Musk said that the cuts were
necessary as there was no choice when the company was losing $4m
per day due to loss in advertising.
DISNEY & Other streaming services
Disney plans hiring freeze and cost cuts according to the memo from
CEO Bob Chapek. Disney’s streaming services lost $1,5 billion this quarter,
more than double the unit’s loss from a year prior and also reported shares
hitting 52 week low recently. The CEO responded that in order to move
Disney to profitability by 2024 the company has to promote cost cuts.
Other large media and entertainment companies, including Netflix, have cut
jobs this year as valuations have slumped.
Why are these measures being taken by so many companies?
The GDP of US has been declining since the last two quarters by 1.6% in Q1
and 0.6% in Q2 and rapid inflation are causing spread of fear of recession.
Even though recession has not officially been declared but the fear of
recession has caused the companies to increase layoffs and promote cost
cuts.