Insider Finance - Business - $88 million for getting fired

Nicholas Carlson October 28, 2022

Hello, Insiders. Waking up this morning really felt like the dawn of a new day. After weeks (months!) of will-he-or-won’t-he, Elon Musk is officially Twitter's new owner. Musk, a self-described “free-speech absolutist,” is now at the helm of one of the most popular social networks. 

So buckle up, because a lot might be about to change. In the space of an evening, Musk appears to have already fired at least four top execs — including CEO Parag Agrawal. And experts say employees should expect a major vibe shift under Musk. The laid-back, flexible culture honed by former CEO Jack Dorsey may not mesh well with Musk's hands-on nano-management style.

Follow along with @TechInsider (fittingly, on Twitter) for the latest.

The latest

• Breaking news: Paul Pelosi, the husband of House Speaker Nancy Pelosi, was attacked at the couple’s home in San Francisco, her office said. Read more here. 
  

• Mark Zuckerberg is betting it all on the metaverse — and experts say it’s because he wants to create an imitation world where he controls everything.

• Rents are starting to fall across the US — and they're set to drop even more in 2023.

  
  

The big story

Patrick Pleul/Getty Images; Vicky Leta/Insider

You heard correctly, Twitter is now an Elon Musk company. 

After months of legal wrangling, one of the most high-profile takeover sagas in recent memory finally came to an end. Though it wasn’t much of a surprise, considering Musk changed his Twitter bio to “Chief Twit” and literally carried a sink into the social network’s headquarters this week. 

As Musk took control last night, Twitter’s CEO Parag Agrawal and chief financial officer Ned Segal were among the company’s top execs to be fired, according to sources. However, sometimes it pays to get ousted, as the top ranks stand to make a total of $88 million in payouts between them.

But as the buyout saga closes, questions are now being asked about the future of the company. Musk has already been mobbed at a Twitter coffee shop by people concerned about potential job cuts, and he is also said to be working on a “super app.” For employees, the day-to-day is also likely to look very different. One workplace culture expert said Musk’s “autocratic and challenging” leadership style is unlikely to gel with the “openness and flexible mindset that is integral to Twitter's culture now.”

It’s a turning point in Twitter’s history and to mark the occasion, Musk tweeted: “the bird is freed.”

Read the full story. 

Top reads

Tyler Le/Insider

• Get ready for a brutal U-turn in the job market. There's a hot, new theory about the job market: labor hoarding, which is a way to explain why businesses are refusing to fire workers despite the worsening outlook for economic growth. But today’s labor hoarding could easily turn out to be a late reaction to weaker demand — and there are already signs that layoffs are on the way.

• A video showed polluted drinking water on a US Navy aircraft carrier. The water — which is used by sailors to drink, bathe, and cook — was contaminated with bacteria and bilge water. However, the water did not appear to contain traces of jet fuel, like there was recently on another US aircraft carrier. The footage showed gray, murky water coming out of drinking fountains and sinks — view it here.  

• Young Silicon Valley workers are in for a rude awakening as “Winter is coming to the tech world.” The days of endless employee perks at Big Tech, like free laundry and private concerts, are coming to an end. Amid a streak of disappointing financial results, inflation, and international turmoil, many young tech workers are facing major job cuts for the first time in their careers. Read the full story. 

• This is how a 40-year-old physical therapist got $222,000 in student loans forgiven through PSLF. Since the loan-forgiveness program benefits public servants, Robert Metzger, Jr. sought work in the non-profit sector in his 30s, and kept his loan repayments low in the meantime by contributing to his flexible spending accounts. Read more on how the gamble paid off.

• "I was a university professor for 13 years. I wish parents weren’t so involved in their kids’ lives." When teaching in Oklahoma, Meg Thompson found her students over-reliant on their parents for support, college essays, and even enrolling. Here’s why she thinks that’s a negative for their intellectual development.

Today’s sound bite

"He pretty much pays for everything, and then I get a monthly girlfriend allowance. It's very sophisticated. We have a whole Google Sheet where I mention what I want to spend money on."

TikTok's Zoe Rae on being a stay-at-home girlfriend — listen to the full segment on The Refresh from Insider

Watch this

From turning old flip-flops into art, to making sneakers out of old plastic bags, these businesses are where fashion meets worldwide waste.

Today's team

Nicholas Carlson (@nichcarlson), Hallam Bullock (@hallam_bullock), Lisa Ryan (@lisarya), and Shona Ghosh (@shonaghosh).

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