Elon Musk plans to cut 75% of Twitter workforce: Report
PTI, Oct 21, 2022, 8:13 AM IST
Image source: PTI / File
San Francisco: Elon Musk plans to lay off most of Twitter’s workforce if and when he becomes owner of the social media company, according to a report by The Washington Post.
Musk has told prospective investors in his Twitter purchase that he plans to cut nearly 75 percent of Twitter’s employee base of 7,500 workers, leaving the company with a skeleton crew, according to the report published on Thursday.
The newspaper cited documents and unnamed sources familiar with the deliberations. San Francisco-based Twitter and a representative for Musk attorney Alex Spiro did not immediately respond to messages seeking comment.
While job cuts have been expected regardless of the sale, the magnitude of Musk’s planned cuts are far more extreme than anything Twitter had planned. Musk himself has alluded to the need to cull some of the company’s staff in the past, but he hadn’t given a specific number — at least not publicly.
”A 75 percent 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,” said Wedbush analyst Dan Ives. “That said, you can’t cut your way to growth.”
Ives added that such a drastic reduction in Twitter’s workforce would likely set the company back years. Already, experts, nonprofits and even Twitter’s own staff have warned that pulling back investments on content moderation and data security could hurt Twitter and its users.
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 the owner of the company.
After his initial USD 44 billion bid in April to buy Twitter, Musk backed out of the deal, contending Twitter misrepresented the number of fake “spam bot” accounts on its platform. Twitter sued, and a Delaware judge has given both sides until October 28 to work out details. Otherwise, there will be a trial in November.
Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.
Top News
Related Articles More
Kidnapped for ransom in 1998, 26/11 survivor Gautam Adani faces biggest trial
Gautam Adani charged in US with USD 250 mn bribery, fraud
India’s GDP growth likely to slip at 6.5 pc, maintains 7 pc estimate for FY25: Icra
RBI cautions public about ‘deepfake’ video of governor being circulated on social media
We disagree with decision, plan to appeal: Meta on CCI imposing Rs 213-cr penalty
MUST WATCH
Latest Additions
Siddaramaiah says confident of winning all three bypolls in Karnataka
Hop on! IT Minister Priyank Kharge checks out Uber Shuttle at Bengaluru Tech Summit
Actress Kasthuri released from jail, says ‘I thank those who made me raging storm’
Kidnapped for ransom in 1998, 26/11 survivor Gautam Adani faces biggest trial
AIMPLB to hold its annual general sessions in Bengaluru from November 23
Thanks for visiting Udayavani
You seem to have an Ad Blocker on.
To continue reading, please turn it off or whitelist Udayavani.