Elon Musk, is preparing to lay off up to 50% of the company’s total workforce in order to simultaneously reduce staff and costs. The news was reported by Bloomberg News, citing people familiar with the matter.
According to Bloomberg, the personnel concerned will be informed as of this Friday. With Twitter’s total workforce of 7,500 people worldwide, the expected reduction will be approximately 3,750 people in total. The criteria that will be used to fire these employees are not immediately clear, but Elon Musk notably asked social media staff to return to the office.
Twitter was one of the first companies to institute the policy of “work from anywhere” (work from anywhere) during the lockdowns that took place during the most difficult days of the COVID-19 pandemic. The policy has been made permanent and some employees have been taking advantage of this leverage since 2020. With Elon Musk’s turnaround, his hopes are high that some of the staff will take the initiative to leave the position, helping the firm to reduce its workforce.
Elon Musk did not come out to officially announce the job cuts. When he spoke to Twitter staff last Friday, he confirmed that reports that he was going to cut 75% of the workforce were false. This statement leaves room for a lot of ambiguity, but one thing is for sure, Musk needs to cut costs across the board.
Given Twitter’s new trajectory on free speech and content moderation, a number of advertisers are already ceasing to use the platform, which is detrimental to revenue generation and stream. which the platform so badly needs. By going into debt to meet the acquisition demand and avoid the ensuing lawsuit, Elon Musk must generate revenue and offset it by significantly reducing costs.
Elon Musk’s Twitter downsizing is already underway
The idea that Elon Musk will cut jobs is no longer a point of contention, as he has already started doing so as soon as he took charge. The billionaire entrepreneur has fired former chief executive Parag Agrawal, chief financial officer Ned Segal, chief legal officer Sean Edgett and head of legal, trust and safety policy Vijaya Gadde.
It was also reported that some Twitter engineers were either fired or shelved, as Musk brought in 50 advisers from his other companies, including Tesla, SpaceX, The Boring Company and Neuralink, to help with the project. restructuring.
While Elon Musk appears to be paying close attention to his Twitter Blue subscription, which he has now valued at $8, the decision to stabilize the workforce remains a key factor in charting a positive future for the social media company.