Elon Musk plans to cut 75% of Twitter workforce, says report

Elon Musk plans to put off most of Twitter’s workforce if and when he turns into proprietor of the social media firm

Elon Musk plans to put off most of Twitter’s workforce if and when he turns into proprietor of the social media firm

Elon Musk plans to put off most of Twitter’s workforce if and when he turns into the proprietor of the social media firm, in line with a report Thursday by The Washington Publish.

Mr. Musk has advised potential traders in his Twitter buy that he plans to chop almost 75% of Twitter’s worker base of seven,500 employees, leaving the corporate with a skeleton crew, in line with the report. The newspaper cited paperwork and unnamed sources conversant in the deliberations.

San Francisco-based Twitter and a consultant for Mr. Musk’s legal professional Alex Spiro didn’t instantly reply to messages in search of remark.

Whereas job cuts have been anticipated whatever the sale, the magnitude of Mr. Musk’s deliberate cuts is much extra excessive than something Twitter had deliberate. Mr. Musk himself has alluded to the necessity to cull among the firm’s workers prior to now, however he hadn’t given a particular quantity — not less than not publicly.

“A 75% headcount reduce would point out, not less than out of the gates, stronger free money stream and profitability, which might be engaging to traders trying to get in on the deal,” mentioned Wedbush analyst Dan Ives. “That mentioned, you possibly can’t reduce your solution to development.”

Mr. Ives added that such a drastic discount in Twitter’s workforce would possible set the corporate again years.

Already, consultants, nonprofits and even Twitter’s personal workers have warned that pulling again investments in content material moderation and knowledge safety might damage Twitter and its customers. With as drastic a discount as Mr. Musk could also be planning, the platform might shortly turn into overrun with dangerous content material and spam — the latter of which the Tesla CEO himself has mentioned he’ll tackle if he turns into proprietor of the corporate.

After his preliminary $44 billion bid in April to purchase Twitter, Mr. Musk backed out of the deal, contending Twitter misrepresented the variety of faux “spam bot” accounts on its platform. Twitter sued, and a Delaware choose has given either side till Oct. 28 to work out particulars. In any other case, there can be a trial in November.

Twitter tells workers there aren’t any plans for layoffs

Twitter Inc on Thursday clarified to workers that there aren’t any plans for company-wide layoffs because it signed a deal to be acquired by Mr. Musk, after Washington Publish reported that Mr. Musk is contemplating layoffs on the firm.

Twitter Normal Counsel Sean Edgett emailed workers on Thursday saying the corporate doesn’t plan layoffs, in line with a supply who seen the e-mail.

(With inputs from Reuters)

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