Analysis of Leadership Communication: Twitter (now known as X)

Evaluate the communications for how effectively leadership met the needs of internal and external stakeholders

The decision-makers at Twitter, now referred to as X, astutely navigated a merger understanding with Musk. They ensured the terms were upheld even when Musk contemplated reneging. Initiating our review, we delve into whom the executive team of X (formerly Twitter) prioritized during the negotiations. In one study, authors reveal that shareholders reaped substantial rewards, averaging about 38% of the pre-acquisition market worth, and the cumulative benefit for all non-Musk shareholders surpassed a whopping $10 billion. Furthermore, the senior management of X benefited handsomely, both in their capacity as stakeholders and as top-tier executives or board members. The merger resulted in approximately $215 million in gains for the four chief officers (Bebchuk, Kastiel, and Toniolo, 2023).

Considering the Well-being of Xs Employees

Before Musks acquisition, X had always championed a deep-seated commitment to the well-being of its workforce, affectionately termed tweeps. Yet, when the leadership embarked on the merger talks with Musk, they appeared to sideline their pledge of ensuring holistic welfare for all staff members and prior job security guarantees. Remarkably, the merger terms did not tether Musks decisions to the magnitude or pace of post-merger layoffs. More critically, Xs management did not earmark a portion of the lucrative merger profits for their employees, neither for those facing layoffs nor for the ones continuing. The leadership seemingly bypassed any substantive dialogue or even superficial commitments from Musk on his post-merger intentions for the staff. Their negotiations seemed to sidestep evident threats to employees that loomed large during the negotiation phase (Bebchuk, Kastiel, and Toniolo, 2023).

A mere seven days after finalizing the merger, Musk initiated sweeping layoffs, showing the door to half the 7,500-strong workforce. Its worth highlighting that the layoffs predominantly impacted the more susceptible employees. Musk further introduced actions that seemingly downgraded several employment terms and work conditions for the retained staff. For instance, in his inaugural communication post-merger to Xs team, Musk outlined a demanding 80-hour work expectation and virtually rendered it unfeasible for staff to...

…means of wealth generation are acceptable is misguided. As highlighted by Adam Smith, for capitalism to be beneficial, mutual exchanges should be advantageous to all involved. Breaching this mutual trust detracts from the essence of our economic structure. Ethical businesses and individuals invariably enjoy long-term advantages, while those lacking ethics face inevitable consequences (Sullivan, 2023).

Elon Musks tenure has seen numerous breaches of this societal pact, eroding trust among stakeholders, including employees, investors, suppliers, and regulators. The ramifications of these ethical missteps are gradually becoming evident (Sullivan, 2023).

On the other hand, organizations that uphold ethical standards have an edge in talent acquisition. Data suggests that even during economic downturns, most professionals (92%) prioritize working for ethically reputable companies. The competitive tech talent market is finite, and professionals remember corporate reputations. Given Musks perceived disregard for workforce well-being, prospective hires might think twice before joining his ventures or seek significant salary hikes to compensate for the perceived risks. Past trends indicate that candidates are far less inclined to join organizations with questionable ethics unless offered substantial financial incentives…