Some folks run businesses that succeed, other ran (past tense) start-ups that failed.
Unfortunately, the lasting affect will be a net positive, because sometimes you have to just be the adult and say loosing money isn't an option. I would like to call this shedding the college weight, and firing 80% of the work force, because the business will die otherwise in the case of Twitter.
Would you rather run a business with much higher ROI with a small user base and run a lean business, or a fat business with super scale data but bleeding out money? I'm not sure I get the argument against this.