Today we say goodbye to the man who pioneered quiet quitting – Pope Benedict XVI. While he would continue to hold the title of Pope after his resignation, the Vatican was forced to hire a new Pope to do the actual work of the Pope. Perhaps 2023 will also mark the end of quiet quitting in the corporate world as layoffs continue and jobs are valued more highly?

The lowdown

• 🚫 Salesforce will lay off 10% of its workforce becoming the latest tech company to reduce headcount.

• 📦 Amazon has increased the number of previously announced layoffs to 18,000.

• 💸 Fed’s December minutes speak of a strong commitment to returning inflation to 2%.

Flex your finance muscle

Twitter’s debt can reportedly be purchased from its lenders at 60 cents on the dollar ($). This is pretty incredible when you consider the initial size of the:

Equity cushion.

An equity cushion is the difference between the value of an asset used as collateral for a secured debt and the amount of the debt itself. For example, if a borrower takes out a secured loan using a piece of real estate as collateral, where the value of the real estate is $500,000 and the amount of the loan is $300,000, the equity cushion would be $200,000.

The equity cushion provides a measure of protection for the lender, as it represents the amount by which the value of the collateral exceeds the amount of the loan. In the event that the borrower defaults on the loan, the lender can potentially recoup the full amount of the loan by seizing and selling the collateral, as long as the value of the collateral is sufficient to cover the amount of the loan.

The $13 billion of debt raised by Elon Musk for his purchase of Twitter was protected by a $33 billion equity cushion, contributed by Musk and his allies. The fact that the debt can now be purchased for 60 cents on the dollar indicates that lenders do not believe the value of the collateral (being Twitter – bought for $44 billion) would cover the amount of the loan ($13 billion). And Musk is trying to raise fresh equity at the takeover price?

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Featured Stories

Funeral provider Dignity kicks off 2023 M&A

We have heard about worst case scenarios where gas prices rise so high that people pass away after no longer being able to heat their homes, but did you know gas prices are a problem for the dead too?

Funeral provider Dignity has recently experienced troubles ($), stemming from the higher costs of cremation due to gas prices. It has made a pre-tax loss in four consecutive financial years and has seen its share price fall from over £20 in 2016 and 2017 to £4.35.

It may be convenient for shareholders, then, that a group of investors, led by Direct Line founder Sir Peter Wood and former Dignity executive Gary Channon, have made a bid to take over and resuscitate the UK's largest funeral provider.

The consortium, which already owns 29% of Dignity, is offering £262 million for the company, valuing it at 525p a share – a 23% premium to Tuesday's closing price. M&A activity in 2023 has come to life.

The content we're consuming today

• Behind the Money podcast: What we can learn from 300-year-old bubbles.

Off-balance sheet items

• CES, one of the world’s largest technology trade shows, begins today in Las Vegas. Here is a summary of the cool gadgets that have been teased so far.

• Balance Sheet readers get 10% off the sleep-improving Apollo wearable. (Ad)

The bottom line

One for Simpsons fans from the FT: Tesla’s Springfield Gorge trajectory ($).