Musk's associates are happy about his decision to lay off half of the staff.
Tech investor David Friedberg said that Musk's cost-cutting measures atTwitter could become a new Silicon Valley standard as companies struggle to address the economic downturn in the months to come.
The investor made a comment on the show. The staff was told to listen to the episode to find out why they were laid off. Four major investors are co-hosting the show.
Friedberg said that he showed the entire Silicon Valley that it could be done quickly. He said that it sets a new standard that a lot of people might say, maybe we should go deeper.
"You don't actually need 50% of the workforce in order to keep the product running and to drive profitability," Friedberg said.
According to David Sacks, a friend of Musk and a member of thePayPal Mafia, companies could easily cut their workforces in half if they returned to their original plans before the Pandemic hit.
The point is that you didn't have to do this when the rates were low. There was a lot of free money and risk seeking that is no longer available.
Friedberg argued that Musk's purchase could lead to a "flurry of violent activity" as more people try to mimic the behavior of Musk's father.
Bill Gurley, a Silicon Valley venture capitalist, gave some advice recently. In September, he said it makes more sense to start large-scale layoffs than small ones.
Some experts point to Musk's layoffs as an example of what not to do.
Why would anyone want to work at a place where they are treated badly? The Conference Board's vice president of human capital studies how companies respond to crises. It will be difficult for organizations that laid off employees to find new employees.
Musk may have cut too deep.
On Monday, Insider's Kali Hays reported that employees were being asked to reach out to old coworkers to see if they would be interested in coming back.
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