After raising $44 billion for Twitter, Musk has to arrange more than $220 million for workers’ compensation, which is by no means easy for him.
Image Credit source: AFP
Elon Musk considers himself a new-age businessman and likes to follow his own rules of business. This is the reason that many of his decisions have been disputed, but he has been moving forward continuously apart from these. Although Musk’s decision in the business world with Twitter’s deal is being considered a decision of great risk. At the same time, it is believed that his sharp decisions regarding the removal of employees can also make it difficult for Musk, know what is the reason. Which could make the Twitter deal the turning point of Musk’s life.
There will be heavy rush to remove the employee
Musk has started laying off employees from Twitter as soon as he arrives. Which is similar to the way they work. Although if experts are to be believed, this decision of Musk may be heavy on him. In fact, Musk will have to pay massive compensation for the removal of employees, according to the Reuters report, he will have to pay more than $ 120 million to the top 3 executives. . At the same time, the New York Times has written that they will have to pay $100 million for laying off 7500 employees. It will not be easy for Musk to create this much cash flow after the 44 billion deal. And if they delay the compensation, it will not take long for the employees to reach the court, which will prove to be a big headache for Musk and it will also have a bad effect on Twitter’s image.
The bigger concern is the market is expressing that after the removal of senior executives and 75 percent of the employees, Twitter’s operation will be affected in the short term. Due to which its market share may also be affected. There is a possibility that regional social media platforms which are standing in comparison to Twitter at this point of time may take advantage of this situation.
Huge deal worth 44 billion dollars
The second big challenge for Musk is to turn this deal into a profit. Musk has made a huge deal of $ 44 billion to buy Twitter. Even though Musk has raised the money for this. But many business stalwarts are not very impressed with this deal. For this, Musk is investing part of his own wealth. Musk has sold Tesla shares worth $ 15 billion for this. The rest of the amount has been raised from other sources. After investing such a huge amount, if the return is not according to the mind, then the situation can worsen.
step into new business
The one thing that the foreign media is repeatedly raising is that Musk is stepping into new business. Musk is currently involved in new-age technology where he researches and develops products. Most of their products are high end and some like SpaceX are completely exclusive products. However, with Twitter, he is foraying into a product where he has to directly connect with the new age common youth. According to experts, it takes time and Musk has not been very comfortable with the wait.
: Language Inputs