According to a story that was published on Thursday by The Washington Post, Elon Musk intends to terminate the employment of the majority of Twitter’s staff if and when he becomes the owner of the social media firm.
According to the story, Elon Musk has reportedly informed potential investors in his Twitter acquisition that he intends to slash approximately 75% of Twitter’s employment base, which now stands at 7,500 people, in order to leave the firm with a skeleton workforce. Documents and unidentified persons acquainted with the discussions were quoted in the article by the publication.
San Francisco-based Twitter and a spokesperson for Musk’s attorney Alex Spiro did not reply immediately to inquiries requesting comment from either organization.
Even while layoffs were to be anticipated regardless of the sale, the scale of the reductions that Musk has planned is far more severe than anything that Twitter had in the works. In the past, Elon Musk has been quoted as saying that some of the company’s employees need to be let go, but he never specified how many positions will be eliminated, at least not in public.
According to the Wedbush analyst Dan Ives, “A 75% headcount drop would signal, at least out of the gates, improved free cash flow and profitability, which would be appealing to investors eager to join in on the purchase.” In spite of this, it is impossible to prune one’s way to prosperity.
Ives went on to say that such a significant decrease in Twitter’s employees would most certainly put the firm back by a number of years.
Already, professionals, charitable organizations, and even Twitter’s own employees have cautioned that cutting down on efforts in data security and content moderation might be detrimental to Twitter and its users. It is possible that Musk is preparing a decrease that is so severe that it would cause the platform to become inundated with bad information and spam very fast. Musk, who is the CEO of Tesla, has said that he will deal with the issue of spam if he becomes the owner of the firm.
Musk withdrew his original offer to purchase Twitter, which was worth $44 billion and was made in April. He claimed that Twitter had exaggerated the amount of phony “spam bot” accounts that existed on its network. Twitter has filed a lawsuit against Twitter, and a court in Delaware has given both parties until October 28 to iron out the facts. In any other case, the case will be tried in the month of November.