Businesses only have one goal, and that’s to make money. Money is the key to everything a business wants to do, including, but not limited to, expansion of territory, expansion of goods, improvement of goods, charitable business, and enriching investors.
This generally involves running a pretty tight ship with excesses being trimmed off throughout the business’s existence. If it costs money and it ultimately doesn’t advance the business, then at some point it’s going to get eliminated. If a business doesn’t do this, eventually these excesses will eliminate the business itself.
When Elon Musk walked into Twitter he got his paring knife and began cutting away at the fat, and swiftly discovered that Twitter was morbidly obese. The trimming still seems to be going even today as Musk is constantly discovering unnecessary expenditures and employees who do more harm than good.
As Musk continues to strip the fat from his new company, Twitter seems to be running just fine if not better than ever. Users are up, bots are down, and Musk was even able to move resources to more important things such as protecting children on the platform, an important task that old Twitter had hitherto ignored in favor of censoring conservatives.
While the western media is constantly doomsaying Twitter and throwing as many insults as they can at Musk over his changes, other Silicon Valley business leaders are taking notes and adopting Musk’s strategy. Take, for instance, this tweet thread from managing partner and CIO of Atreides Management, Gavin Baker, who noted that other CEOs are getting out their own knives and are now happily cutting away in their own companies.
1) The fact that Twitter is running well with headcount down significantly really matters.
Whether they admit or not, everyone in SV admires Elon.
A lot of venture funded CEOs are sending emails like this; inspired by Elon and taking drastic action.
Margins are going up. pic.twitter.com/cyyZjFjR8W
— Gavin Baker (@GavinSBaker) December 9, 2022
As Baker noted in a follow-up tweet, the phrase around town is now “lighter is faster.” Meaning that with all these excess employees out of the way, the companies begin performing like well-toned athletes instead of hobbling blobs at the buffet.
Don’t underestimate what this signifies. This is a pretty big swap in culture for Silicon Valley. A lot of money is dedicated to excess in many different forms. Many of these businesses resembled what amounted to daycare for adults. Expensive foods that weren’t always eaten, and spaces dedicated to activities that had nothing to do with work such as yoga and meditation rooms. They even threw parties that were sold as “team building exercises.” Entire buildings would be purchased only to have most of the employees work from home.
YouTuber “ItsAGundam” has an ongoing “Adult Daycare” series where he shows you TikToks from various tech employees who effectively brag about how cushy and excessive their businesses are. Here’s the third entry but I suggest you go and watch all of them.
This one in particular features what amounts to a 5-star meal being served to employees every day, a room full of Legos for employees to destress with, and even one company that provides beauty products and tools, including curlers, straighteners, and more.
And if any of them were like Twitter, then many of these employees hardly worked. Some would even take off months for “mental health.”
This isn’t even talking about all the time and effort dedicated to activism. While it’s unclear how much money each company dedicates to departments that act as “trust and safety” entities, if it’s anything like Twitter, quite a lot of time and effort is put into political maneuvering on behalf of the Democrat Party. As I said earlier, so much was put into political posturing on Twitter that protecting children was hardly a concern.
If CEOs are beginning to move toward the Musk method of business, then a lot of this culture is about to burn, and if this culture burns one has to wonder what kind of effect it will have on society. Businesses will become far more concerned about doing what their original intent was, not caving to activist employees demanding it “get involved,” which opens up its own can of worms.
If that’s the case, then good riddance. Excess is usually the first to go when a business begins cutting costs, and “excess” in this case is a lot of adult children who believe some very authoritarian things.