Founders make this mistake when ‘copying layoffs’ like Musk, says Ashneer Grover

Elon Musk ordered mass layoffs at Twitter -- letting go of half the workforce or roughly 3,700 employees -- soon after acquiring the social media giant in a $44 billion deal. But “copycat founders” who ape Musk when it comes to layoffs are making a crucial mistake, according to BhartaPe co-founder Ashneer Grover.

Grover offered his take on layoffs and acquisitions in a tweet this afternoon. He said Musk took control of Twitter, fired incompetent management and then carried out layoffs in the overstaffed organisation. “Most copycat founders are skipping the first hard part (of firing themselves or getting bought over) and conveniently copying layoffs,” he wrote. “What works in M&A just does not otherwise!” Grover added, noting that the kind of business strategy that works in cases of merger and acquisitions doesn’t necessarily work in other cases.

First @elonmusk took over company, fired incompetent mgmt and then did layoffs in a bloated org. Most copy cat Founders are skipping the first hard part (of firing themselves or getting bought over) and conveniently copying layoffs. What works in M&A just does not otherwise !

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— Ashneer Grover (@Ashneer_Grover) November 19, 2022

Roughly half of Twitter staff was impacted by layoffs soon afterwards, and a wave of resignations sparked by Musk’s “hardcore” work culture warning reduced the workforce even further this week. In fact, the future of Twitter seemed to hang in the balance Friday after its offices were locked down and key employees announced their departures in defiance of the ultimatum from Musk.

Musk, also the CEO of Tesla and SpaceX, has come under fire for radical changes at Twitter, but many also support his strategy for the social media company.

“It’s legitimately surprising that how efficient he’s making the whole company and so the platform! Along with that — highest usage, more traffic and in the end more revenue! Truly worthwhile,” wrote one Twitter user in response to Ashneer Grover’s tweet.

“Spot on observations. He has not invested the money just for the sake of it,” another said.