Musk's actions have certainly damaged Twitter and its engineering. When you set the house on fire of course some termites will get killed but then you might also kill some babies and the family dog.
A lot of tech companies have bloat in the form of AI ethics people, DEI people and so on. They need to go. But Musk probably hurt twitter a lot in short term by firing a lot of engineers and making it a place that made people unhappy.