Jack Dorsey apologizes to fired Twitter staff in recent tweets. The co-founder of Twitter and its former CEO says it’s his fault for growing the company’s size too fast. In turn, the company couldn’t afford to keep its employees on board due to not enough revenue. What can business owners learn from Jack Dorsey’s mistake?
Jack Dorsey Apologizes Via Tweets
Here are the recent tweets from the co-founder giving his apology:
My Thoughts About Jack’s Decision As A Former Employee (Tweep)
When I worked at Twitter from 2017 to 2020 the company’s employee headcount did explode. In 2018 the company became profitable for the first time in its history and I believe the executives felt they could finally improve the company. That meant not only hiring additional staff to work on undermanned projects and tasks (and there were many), but to also invest in new ideas.
However, by the time I left in December 2020 I saw things were negatively changing for the company. While Twitter made money, its profitability was shaky due to its dependence on advertising. The company makes nothing unlike other Silicon Valley companies. Thus, if advertisers decrease their spending for any reason the company’s revenue would take a major hit.
On top of that Twitter continued to make moderation decisions alienating more users. And with less Daily Active Users (DAUs) and Monthly Active Users (MAUs), the less appealing the platform became to advertisers. In the past year, and this one, I couldn’t see how Twitter could continue to survive with the large workforce it had.
What Can Business Owners Learn From This?
Since I’m a small business owner myself now I do my best to learn from other business owners’ decision, be them good or bad. That way I don’t repeat their mistakes, and I can implement their successful ideas to improve my business.
Jack Dorsey apologizes for growing Twitter’s size too fast, and this is a mistake many business owners make. Once they get some success I see owners wanting to grow their company by hiring more staff. Or they want to open another location. Yet, this is the wrong move. I understand success feels good, and it brings a sense of security, but business owners don’t understand the added costs of expansion.
Hiring an employee, even on a part-time basis, requires a consistent, strong source of revenue. Because owners have to make paydays. And they have to pay various types of payroll taxes. Finally, if a business offers employee health insurance then having another employee on staff means additional expenses there.
I can tell you myself that I’m no where near successful enough to hire an employee to help me out. And it’ll probably be like that for some time. Oh yes, I could borrow money to pay for an employee (and many businesses do just that) but now I really need to bring in more revenue to service that debt. It’s just too much stress to put on myself personally, and my business financially.
And that’s why companies have layoffs and or outright fail.