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Comment by thinkingemote

Musk and friends compare Twitter to other tech companies and see that it's ratio of employees to revenue is lowest. He therefore thinks he must halve the number employees and/or increase revenue to get this ratio up.

From the chat log exhibits from the Twitter vs Musk case: https://danluu.com/elon-twitter-texts/#47

A VC (Jason Calacanis) does back of the envelope calculations:

Twitter revenue per employee: $5B rev / 8k employees = $625K rev per employee in 2021

Google revenue per employee: $257B rev2/ 135K employee2= $1.9M per employee in 2021

Apple revenue per employee: $365B rev / 154k employees= $2.37M per employee in fiscal 2021

Twitter revenue per employee if 3k instead of 8k: $5B rev/ 3k employees= $1.66m rev per employee in 2021 (more industry standard)

Elon: "Insane potential for improvement"

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