When will Twitter learn its lesson?
I blogged that Twitter must reinvent itself back on October 21 of 2015.
In the aftermath of laying off more than 300 employees, now it is at it again. This time it will lay-off another 300+ employees. And this time, it seems that Twitter will shrink its sales force. Sort of ironic when you think about it. The company needs to boost sales and what does it do? Cut its sales staff. No matter.
Twitter is not going to make it as a for-profit company on its own. It needs a buyer and if I were CEO Jack Dorsey, I’d be looking for one. The fact is, the millions of its users don’t purchase sponsored ads. And the corporations that should be buying sponsored ads are losing faith in Twitter because their targeted consumers aren’t responding to sponsored ads. Twitter’s ad model is not working. I wrote last year that Twitter needs to reinvent itself. It needs to disengage itself from Wall Street. Maybe it’s too late. But proving itself as an earnings machine to satisfy the craven lust of its stockholders is not a model the company can sustain. I re-iterate that Twitter must become a public benefit corporation should it want to continue to try and succeed on its own.
It would make sense for Google to purchase Twitter but it can wait. Twitter will continue to bleed until it becomes desperate. Google once featured Tweets when it worked out an arrangement with Twitter to do just that. But then disagreements ensued and Twitter vanished from the Google feed. It would be advantageous for Google to buy it and play catch-up to Facebook in the social media game. But how to make Twitter profitable would be the problem and as I already suggested, Twitter’s value lies not in its profitability but in its public utility. It is valued by journalists and media and heavily used by various people around the globe to express opinions and receive updates. It would make a great PR move for Google if it acquired Twitter and kept it running as a free service without the need for sponsored ads.
In the end, Twitter is a another great example of a product that should never have gone public and only did so at the behest of greedy investors, and certainly its founders. Does anyone remember what Twitter was originally created for? Noa Glass founded the platform for podcasting. Then Jack Dorsey came into the picture saying the product needed to work as a “status” product, meaning you could use it to inform people of where you are. Twitter needs to go back to its roots and ultimately serve the public as a means to deliver important information fast. It is not for social media. It’s utility lies in helping people get necessary and important updates on events that impact anyone in around the world. It’s been corrupted by capitalist, corporate greed.