THE AP: SAN FRANCISCO The majority of Twitter’s workers will be laid off by Elon Musk if and when he acquires the social media business, the Washington Post reported on Thursday.
According to the story, Musk has informed potential investors in his purchase of Twitter that he intends to lay off approximately 75% of the company’s 7,500 employees, leaving it with a skeleton staff. Documents and unidentified persons familiar with the discussions were mentioned by the newspaper.
based in San Francisco Requests for comment from Twitter and Alex Spiro, an attorney for Musk, were not immediately answered.
Even while job cutbacks were anticipated regardless of the sale, Musk’s proposed ones will be much more severe than anything Twitter had in mind. Musk has previously hinted at the necessity to reduce the company’s workforce, but he hasn’t specified a number, at least not in public.
According to Wedbush analyst Dan Ives, a 75% personnel reduction would suggest, at least initially, higher free cash flow and profitability, which would be appealing to investors eager to get in on the sale. That stated, progress cannot be achieved by cutting corners.
Ives added that such a drastic reduction in Twitter’s workforce would likely set the company back years.
Twitter and its users may suffer if expenditures in content moderation and data security are reduced, according to experts, organisations, and even Twitter’s own workers. With as drastic a reduction as Musk may be planning, the platform could quickly become overrun with harmful content and spam — the latter of which the Tesla CEO himself has said he’ll address if he becomes owner of the company.
Musk withdrew his $44 billion purchase offer for Twitter in April, claiming that Twitter had overstated the amount of phoney “spam bot” accounts it had on its network. A Delaware judge has given the parties until October 28 to resolve the issues raised by Twitter’s lawsuit. If not, a trial will be held in November.
Elon Musk reportedly intends to reduce Twitter’s personnel by 75%.
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