December 9, 2022

Elon Musk plans to cut 75% of Twitter employees if he takes charge of the company – report | Elon Musk

Elon Musk told potential investors that he plans to remove nearly 75% of Twitter employees as part of his deal to take over the social media company, Washington Post reported on Thursday.

Jobs are expected to be cut in the coming months regardless of who owns the company, according to the report, which cited interviews and documents.

News of Musks’ plans, should he eventually take over the business, comes at a difficult moment for Twitter. The company said in July that it had “notably slowed in hiring” amid Wider economic downturn in the tech industrySeveral companies have announced hiring freezes and layoffs recently.

Thursday evening, Bloomberg reported that an internal memo circulated before Twitter He said there were “no company-wide layoffs”.

Meanwhile, the acquisition drama with Musk boosted low morale, and staff leadership To withdraw in large numbers. Twitter has been embroiled in a legal battle with the billionaire for months after Musk tried to walk away from the $44 billion acquisition deal, before backtracking earlier this month and saying he would go ahead with it after all.

“Twitter appears to be rudderless, in a slightly downward spiral, and Musk has only exacerbated it,” he said. Karl Tobias Williams Chair in Law at the University of Richmond. “Looks like it’s going to be a rough sail for a while.”

The Washington Post reported that the social media company’s human resources staff had told employees they were not planning mass layoffs, but documents showed extensive plans to fire employees and cut infrastructure costs before Musk offered to buy the company. .

But while Twitter’s current management plans to lay off 25% of employees by the end of next year, the new report revealed that Musk wants to reduce Twitter’s 7,500 employees to a “skeleton” of about 2,000.

Tobias said the layoffs will undoubtedly have an impact on Twitter’s daily operations, including its ability to moderate harmful content and combat security issues. This follows a scathing report of irregularities in September Accused Twitter falls short on both fronts, claiming there are “fatal” shortcomings in the company.

According to a Washington Post report, Twitter has already expected to cut funding for infrastructure sites, including its data centers. Musk, as the owner of Twitter, said he would relax its content moderation policies and potentially shift the company to a subscription-based profit model. Twitter did not immediately respond to Guardian’s request for comment.

The current battle between Musk and Twitter began when the businessman tried to walk away from a deal to buy the company in May, after he allegedly reduced the number of bot and spam accounts on its platform. Twitter accuse him “Evoke” an excuse to retreat.

The bitter confrontation was scheduled to go to court before Musk Make a dramatic turn in early October, saying it would go ahead with the deal on its original terms. The billionaire is now securing funding to close the purchase before next Friday’s deadline, which is when a judge said the deal should be finalized.

Reuters contributed to the report