Dumping all those woke people who banned President Donald John Trump, the Babylon Bee and Robert Stacy McCain has turned Twitter’s losses into profits, according to free-speech (and other freedoms) advocate Charles Haywood, who blogs here.
Using publicly available data, Haywood figures Twitter went from 20% deficits to a 28% profit. …
“In other words, the vast majority of 63% of Twitter’s expenses are personnel costs. If we assume primarily is 80%, and that 20% of cost of revenue is also personnel costs, 58% of Twitter’s total costs are personnel costs.
“When Musk took over, Twitter had 7,500 employees. Let’s guess 70% of those have left. Leaving aside pay differentials, that suggests that Twitter’s expenses have, likely permanently, dropped 41% overnight. That makes its new annualized projected profit $1.3 billion.
“This means Twitter’s net margin, going forward, is now about 28%. By way of comparison, Apple and Google both maintain net margins in the 22 to 25% range. In other words, Twitter is now more profitable than those companies.
“Your mileage may vary, and this is somewhat of a simplification. But it shows why Musk can win just by firing worthless losers.[“]