[I am explicitly not weighing in on whether this gambit will work or not. Could go either way, there is a lot of luck involved in business.]
> Twitter certainly has too many employees for the amount of revenue they're bringing in
This doesn't make any sense given that Twitter's revenue per employee (RPE) was roughly double that of well-run companies like Oracle or SAP and in the ballpark of EA and Adobe. This metric is a red herring currently being used to trim workforces. Which, that's the game and this is where we are in the cycle. But the ratio of revenue:employee doesn't tell the story here.
Granted cost structures and business models are different across these firms, and Twitter likely could have cut some staff (they all likely will in coming months now that it is timely to do so). But that's exactly the point here: the Twitter ratio between employees and revenue works fine at other companies, and has done so for a long time. Expedia has built a sustainable business with a lower RPE than Twitter, and it is similarly a pure-play Internet company. From a strictly financial perspective, it's equally likely that there were other levers that could have equally been tuned to fix Twitter's persistent problems.
IMHO the bigger problem was they are tooled as a high-growth company, but they were not growing fast. Even a modest bit of consistent growth, say 15% y/o/y, sustained for years, would likely have ameliorated their problems. Perhaps they have a large fixed cost to running Twitter, and they simply have not scaled the business enough to make it worthwhile yet -- could they double their business from the pre-acquisition base while only increasing staff 25%? That would be a good business! But I would guess the fundamental issue was that they are tooled for hypergrowth that is likely not on the radar.
Big staff cuts, modest (but smaller) revenue drops, then aiming to grow at a slower, sustainable pace is pretty stock PE stuff (although they typically try to pay at or below market instead of much higher than market). Can only assume people who see this as genius have never observed PE work.