Editors News- Elon Musk intends to fire over 7,000 Twitter employees in the coming months.
- Twitter’s current management is also planning to reduce the company’s payroll by about $800M.
Elon Musk, Tesla Motors CEO intends to cut the majority of Twitter’s workforce. According to recent reports from The Washington Post, the billionaire has informed potential investors in his purchase of Twitter that he plans to fire nearly 75% of the 7,500 employees.
Musk has previously hinted that the social media platform may need to lay off some of its employees. Following this, a former spokesperson of Twitter expressed that Musk’s plans regarding workforce reduction are “unimaginable.”
Dan Ives, a Wedbush analyst stated:
A 75 per cent headcount cut would indicate, at least out of the gates, stronger free cash flow and profitability, which would be attractive to investors looking to get in on the deal. That said, you can’t cut your way to growth.
Ives added that significant reduction in Twitter’s workforce would probably cause the business to fall years behind.
Will Twitter Adopt Musk’s Strategies?
At the same time, Twitter’s current management is also planning to reduce the company’s payroll by about $800 million by the end of next year, which would result in the departure of close to a quarter of the workforce. However, the human resources staff at Twitter platform recently told the employees that no mass layoffs were planned.
Nonetheless, the documents revealed that extensive plans to push out staff and cut infrastructure costs were already in place before Musk offered to buy the company, as per the report. Regardless of who owns the company, there will likely be layoffs in the upcoming months.
Moreover, the billionaire is approaching October 28, the deadline issued by a US court to halt the Twitter deal. If the deal does not close by the deadline, a trial will be held in November.
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Source: https://thenewscrypto.com/elon-musk-plans-to-lay-off-75-of-twitters-workforce/