Twitter is currently facing a number of issues and controversies after its acquisition by Elon Musk in late 2022. Some of the major problems plaguing the platform include moderation challenges, declining revenues and users, and concerns around misinformation and extremism.
Moderation Challenges
One of the biggest challenges Twitter is grappling with is how to effectively moderate content on its platform. Shortly after taking over Twitter, Musk fired top executives and laid off nearly 50% of Twitter’s workforce, including many employees responsible for content moderation. This has raised concerns about Twitter’s ability to combat hate speech, misinformation, and other harmful content. Some early data showed hate speech spiking in the days after Musk took over.
Musk has expressed his preference for a “lighter touch” approach to moderation and a commitment to “free speech.” However, critics worry this will make Twitter overflow with toxic content and drive away users. There are also concerns that a lack of human moderators and reliance on algorithms will be inadequate in catching policy violations. It remains unclear how Twitter aims to strike a balance between allowing free expression while also ensuring user safety.
Declining Revenues
Twitter was already struggling to grow its revenues prior to Musk’s takeover. However, some of Musk’s rapid changes have accelerated Twitter’s revenue declines since the acquisition.
Musk quickly fired the sales leadership team, laid off 50% of the company’s workforce, scared away advertisers, and made product changes without planning for revenue impact. Some estimates showed Twitter’s revenue in Q4 2022 declined over 40% year-over-year. Key advertisers like GM, United Airlines, and Carlsberg Group have paused spending on Twitter. Twitter’s reputation with brands has also taken a hit following the chaos of the takeover.
Restoring revenue growth will be challenging. Musk wants to improve subscriptions and other areas, but advertising still accounts for 90% of Twitter’s business. Winning back advertisers while remaining committed to free speech principles will be a difficult balancing act.
User Base Declines
In addition to struggling finances, Twitter has seen declines in its user base since Musk took over. Some users have fled the platform over concerns about less moderation, more toxic speech, and instability at the company. While Twitter did see an initial surge in users right after the takeover, daily active users then immediately began to decline.
According to internal Twitter documents, the platform lost over 2 million daily active users in the weeks after Musk took over. High-profile users like Shonda Rhimes and Toni Braxton have said they are leaving the platform. And Twitter’s partnerships with third-party app developers are also at risk if user growth continues to decline.
Winning back users may prove difficult in the current environment. Trust in the platform has eroded, especially among Twitter’s most active voices. Restoring user confidence will require showing real commitment to safety and stability.
Misinformation and Extremism Concerns
Public policy experts and advocacy groups have raised concerns about Twitter becoming a bigger vector for misinformation, extremism, and real-world harm under Musk’s management. These concerns stem in part from Musk’s vocal skepticism of content moderation and embrace of absolute “free speech.”
Key staffers who oversaw efforts against election misinformation, COVID-19 misinformation, and violent extremism have been fired or resigned. And research groups are reporting an early uptick in hate speech, racism, and anti-LGBTQ content. If left unchecked, experts warn the platform could further toxify political discourse and enable real-world violence.
However, Musk claims the platform will continue combating misinformation under his watch. Striking a balance between unfettered speech and a safe, inclusive platform will be a monumental challenge.
Advertiser Boycott
Amidst the chaos after Musk’s Twitter takeover, many top advertisers paused or pulled back spending on the platform. Key brands like General Motors, United Airlines, Mondelez, and Carlsberg Group all temporarily stopped buying ads on Twitter.
This advertiser exodus stems from concerns about content moderation and brand safety. Advertisers worry their ads could end up next to objectionable content if moderation is weakened. The departure of key moderation leaders exacerbated these concerns.
Losing major advertisers deals a huge revenue blow at a time when Twitter is also laying off staff and losing users. Some estimates show Twitter’s Q4 2022 revenue declined over 40% year-over-year due in large part to the ad pause. Restoring advertiser trust and confidence will be critical to Twitter’s finances.
Employee Layoffs
Within a week of acquiring Twitter, Elon Musk fired top executives at the company including CEO Parag Agrawal and CFO Ned Segal. He then proceeded to layoff approximately 50% of Twitter’s 7,500 employees.
These drastic job cuts were aimed at slashing costs and reportedly occurred with little planning for how operations would be impacted. Entire teams responsible for content moderation, human rights, accessibility, marketing, and engineering were gutted or eliminated.
The layoffs leave Twitter with huge gaps in key areas and fewer employees to meet Musk’s aggressive new product timelines. Burnout and plummeting morale among remaining staff are also big concerns. Rebuilding capable and motivated teams will be a monumental task.
Product Roadmap Uncertainty
Musk has outlined ambitious plans to revamp Twitter’s products to drive growth. He wants to improve tweets, combat bots, add encrypted DMs, facilitate payments, and more. However, the huge employee cuts and leadership shakeup have disrupted Twitter’s product roadmap.
Most of the executives who oversaw core product development are now gone. The remaining overworked engineering teams are struggling to keep Twitter’s core infrastructure stable while also pursuing Musk’s vision. Morale is suffering from constant change and unclear priorities.
Delivering substantial new products on accelerated timelines with a depleted workforce will be extremely challenging. It’s uncertain if or how Musk can execute on his sweeping product promises in the current environment.
Toxic Culture Concerns
Current and former Twitter employees have described the culture at Twitter under Musk as toxic, chaotic, and unsustainable. Musk has aggressively pushed teams to meet tight deadlines for new features, requiring late nights and weekend work.
He has also been described as unprepared and capricious, pushing teams in multiple conflicting directions on short notice. Some employees have been fired for disagreeing with Musk or asking probing questions about assignments.
This turbulent environment has taken a huge toll on morale. Twitter has seen even more employee resignations after Musk’s takeover, including top engineers. Rebuilding a healthy culture that retains talent will be hugely important if Twitter is to thrive under Musk.
Conclusion
Twitter is at a crossroads following its acquisition by Elon Musk. Key challenges around content moderation, free speech principles, revenue declines, user trust and retention, product execution, company culture, and misinformation threaten Twitter’s future success. But with care, strategic focus and effective leadership, Twitter still has opportunities in front of it. Whether Musk can take decisive and measured action to address these challenges remains highly uncertain. Twitter’s next chapter will have major significance for public discourse online.
