The social media company has reportedly reduced bonus payments for some employees and increased performance reviews, as per the Wall Street Journal. Previously, the company gave more employees lower reviews, indicating they were meeting expectations or just riding the line, intending to push them out to cut back on headcount. However, this approach has been reversed as Meta has laid off 21,000 workers in the past two months. The company has been losing money through the Metaverse initiative, having spent $10 billion in 2021 and $13 billion in 2022 with more to follow. In their last earnings call, the company stated a reduction in capex compared to prior guidance.
Twitter is trying to find revenue sources outside the advertising arm by offering free advertising or reduced pricing on advertising. The value of the company has dropped from $44 billion to $20 billion, and it is expected that the company will continue to come up with different schemes to generate more revenue. Verified accounts will be the only ones recommended on the platform for the “for you” feed starting April 15th, meaning that users will have to pay to play.
Elon Musk tweeted about this move, and it seems most users will accept the change as Twitter tries to enhance its revenue sources.
