The $44 billion figure is correct, but the whole layoff situation was messier than it looks: he didn't just cut moderation staff, a ton of engineers and technical people who kept the infrastructure running also left, which made the platform pretty unstable for months. On top of that he rolled out radical changes like the paid verification system (Twitter Blue), drastically cut API access for outside developers, and changed the recommendation algorithms, which completely changed how the timeline looked for most users.
What some people don't mention is that all this happened while Musk was trying to finance the purchase with debt, so he was under constant pressure to make it profitable fast. The result was kind of a domino effect: some users moved to platforms like Bluesky, others just spent less time there, and advertising took a hit because a lot of brands didn't want to be in such an uncertain place. It's not like Twitter collapsed completely, but it definitely lost relevance compared to before.