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Notes -
I've seen this pointed out, and I think it's quite correct. Twitter was losing money in a boom market; they weren't prepared for a bust. But:
The seemingly-intended implication of "Musk is making wise decisions now" isn't supported. Even when cuts are necessary there can be better ways and worse ways to make them and there's at least circumstantial evidence he's deep into "worse ways".
The seemingly-intended implication of "Musk was making a wise decision to buy Twitter to fix it" is almost outright contradicted. Imagine if he'd had the patience to wait a little longer, until Twitter was already running low on operating funds and making drastic cuts internally. First, the cuts probably would have come out better, since without an ownership change acting as a Schelling point for layoff timings, there wouldn't be a conflict between "need to make a lot of cuts at once to avoid losing the best people to preemptive job changes" and "need to deliberate over who to cut to avoid losing the best people to poor firing choices". Second, he could have been seen as the hero (coming in to save the failing Twitter! outside funding bringing an end to the layoffs!) rather than the villain (coming in to destroy Twitter! laying off people who were totes going to have 20 year careers here otherwise!). Finally, he could have bought it at fire sale prices, rather than "peak of a bubble right before a crash" prices.
Don’t forget the time pressure on him to buy it. It was getting bottier, leftier, and tankier by the week, and had he waited long enough to make it a viable business, he might have himself been banned.
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