It's going to send a message that companies are more overstaffed than we thought. This may explain an underlying fear driving even some engineers to put their reputation on the line with confident declarations that Twitter is going to fail. Some were saying it wouldn't survive the night. It's now morning. Others saying it won't last the weekend or coming week. We'll soon find out. I would expect some bumps along the way. Twitter Blue was a bump.
Perhaps Twitter is just the first to go lean before the recession. Elon merely the first dancer who is willing to look dumb. Now who's going to be the first follower to transform the lone nut into a leader?
Watch this 2 minute to see how this works, you may have seen this before:
https://www.youtube.com/watch?v=fW8amMCVAJQ
Now here's a counterbalance to the fear with an optimistic take: This is a correction. A small number of tech companies have been hoarding talent. The talent gets a 3 month severance and made available to the larger ecosystem.