The news: Mass firings, rehirings, an advertiser exodus, and ad-hoc user bans have punctuated Elon Musk’s first week as the owner of Twitter.
What this means: Twitter is scrambling to rehire some employees days after they were fired as managers realized they need expertise to build features Musk had asked for, per Bloomberg.
Why this could backfire: It is possible that Twitter eroded a lot of goodwill from ex-employees, especially after the cold, impersonal manner in which they were dismissed. It is unlikely that employees will want to stick around a company that could easily dispose of them when they’re no longer needed.
Brands press pause on advertising: Various advertisers including GM, Audi, Pfizer, General Mills, Volkswagen, and Interpublic Group have paused advertising on Twitter.
A burning platform: Twitter now has the sisyphean task of proving to advertisers that it is a sound investment during a time when businesses are looking to cut expenses.
Paid verification service is delayed until after US midterm elections: Twitter’s $7.99-per-month Blue plan, which allows paying users to purchase a verified checkmark “just like the celebrities, companies, and politicians," has been delayed until after Tuesday’s midterm elections, per PCMag.
The big takeaway: The permanent banning of spoof accounts runs counter to Musk’s earlier promises to unlock Twitter’s potential for free speech—and could result in continued loss in advertising and user engagement.
This article originally appeared in Insider Intelligence'sConnectivity & Tech Briefing—a daily recap of top stories reshaping the technology industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily.
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