Social media looks on as rapid overhaul continues at Twitter
Kar-Tr

A lot of disruption is going on in the tech space, with knock-on effects being seen across the whole industry. An example of this is the recent advertising debacle witnessed during Snap's (NYSE:NYSE:SNAP) earnings, which foreshadowed the stock plunges of Big Tech the following week. While it is no longer publicly traded, the fact that Twitter axed half of its workforce on Friday could inform investors in other social media platforms of what might be coming in the not-so-distant future.
Case in point: Meta Platforms (NASDAQ:NASDAQ:META) is planning to begin large-scale layoffs this week, according to the Wall Street Journal. The firings are expected to impact "many thousands of employees" of the company's more than 87,000-strong workforce, with Meta (META) even telling staff to cancel non-essential travel. Shares of META have tumbled 35% over the past month and more than 70% YTD amid intensive spending on the metaverse and threats to the firm's core social-media business (free cash flow tumbled 98% in Q3).
What is still to be seen is if any of the big editorial changes at Twitter will end up impacting Facebook, Instagram, Messenger or WhatsApp. So far, Chief Twit Elon Musk appears to be making a lot of rules on the fly, and a tweetstorm over the weekend pointed to additional adjustments in the making. "Previously, we issued a warning before suspension, but now that we are rolling out widespread verification, there will be no warning," "any name change at all will cause temporary loss of verified checkmark" and "going forward, any Twitter handles engaging in impersonation without clearly specifying 'parody' will be permanently suspended."
Too far, too fast? Bloomberg reported that Twitter is reaching out to dozens of employees who lost their jobs and asking them to return. Some of those who are being asked to come back were "laid off by mistake," while others "were let go before management realized that their work and experience may be necessary to build the new features Musk envisions." The NYT also suggested that Twitter would delay its $8/month model - for blue check verification marks, less ads, the ability to post longer videos and priority ranking for quality content - until after the midterm elections. Will Meta (META) eventually go subscription? (6 comments)