When Elon Musk bought Twitter for $44bn, he clearly didn’t know that the key assets he was buying lay in Twitter’s 7,500 workers’ heads. On corporate balance sheets, the assets of a corporation are its factories, equipment, patents and brand name. Workers aren’t considered assets. They appear as costs. In fact, payrolls are typically two-thirds of a corporation’s total costs. Which is why companies often cut payrolls to increase profits.
Source: Elon Musk Went on a Firing Frenzy at Twitter. Now He’s Paying for It | Portside