In a recent interview, Steve Huffman, the CEO of American social media website Reddit, praised Elon Musk’s proactive cost-cutting strategy and layoffs on Twitter.
Huffman revealed that he had multiple discussions with Musk regarding the challenges of managing social platforms. He expressed admiration for Musk’s approach to running Twitter, especially his exceptional ability to optimize costs after acquiring the platform.
Musk’s bold cost-cutting measures, including significant layoffs, initially raised concerns about Twitter’s future viability. However, Huffman found inspiration in Musk’s bold decision, considering it a valuable example that Reddit could emulate and learn from while overcoming its own financial challenges.
Watch Tucker Carlson bursts out laughing as Elon Musk describes Twitter layoff on youtube
Recognizing Reddit’s historical difficulties in profitability, Huffman devised an ambitious business plan aimed at transforming the platform into a profitable enterprise. One controversial aspect of the plan involves charging substantial fees to other tech companies that utilize Reddit’s data.
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Huffman drew an important lesson from Musk’s approach: layoffs can help achieve sustainable financial stability.
Huffman questioned why Twitter, despite generating substantial revenue under its previous management, struggled to achieve sustained profitability. In contrast, Musk successfully operated a company with a vast user base in the advertising industry while employing significantly fewer staff, resonating deeply with Huffman.
Although some employees eventually returned to work at Twitter, the overall workforce remained significantly lower than before the acquisition. Musk’s commitment to strict cost-cutting measures, including refusing to pay certain bills and facing eviction notices, served as evidence of sacrifices made to achieve profitability.
Musk’s cost-cutting measures on Twitter had a significant impact on Huffman. He found inspiration in Musk’s ability to optimize costs and improve profitability, aiming to replicate Musk’s success in the unique realm of Reddit. However, as Reddit faces challenges and controversies, the platform continues to forge its own path, differentiating itself from Twitter while grappling with the complexities of managing a community-driven platform.
🤝A Case of Like-Minded Leaders?
Previously, Mark Zuckerberg, the CEO of Meta, referred to Musk’s extensive layoffs on Twitter as an “example” for the industry. Zuckerberg believed that Musk deserved recognition for his actions.
He led the way in streamlining Twitter early on, and I think those overall are good changes.
Zuckerberg
He interpreted Musk’s approach as an attempt to make the company “more technical” and reduce the gap between engineers and himself, aiming to “minimize managerial layers.”
His actions made me and many others in the industry think, ‘Hey, should we be doing something similar?’ or ‘Can we improve our company by driving similar measures and principles?’
Zuckerberg
He believed that there are likely many others who share similar thoughts, but executives from other companies might choose to implement such changes quietly.