Report: Elon Musk plans to cut 75% of Twitter workforce

SAN FRANCISCO (AP) — Elon Musk plans to lay off most Twitter employees if he takes ownership of the social media company, according to a report Thursday by the Washington Post.

Musk told potential investors when buying on Twitter that it plans to cut nearly 75% of Twitter’s employee base of 7,500 workers, leaving the company with a reduced team, according to the report. The newspaper cited documents and unnamed sources familiar with the deliberations.

San Francisco-based Twitter and a representative for Musk’s attorney, Alex Spiro, did not immediately respond to messages seeking comment.

While job cuts were expected regardless of the sale, the scale of the job cuts planned by Musk is far more extreme than anything Twitter predicted. Musk himself has hinted at the need to eliminate some company personnel in the past, but he hadn’t given a specific number — at least not publicly.

“A 75% reduction in headcount would indicate, at least initially, stronger free cash flow and profitability, which would be attractive to investors looking to participate in the deal,” said Dan Ives, analyst at Wedbush. “That said, you can’t make your way to growth.”

Ives added that such a drastic downsizing of Twitter would likely set the company back years.

Already, experts, nonprofits and even Twitter staff have warned that withdrawing investments in content moderation and data security could harm Twitter and its users. With such a drastic reduction as Musk might predict, the platform could quickly be overrun with harmful content and spam — the latter of which the Tesla CEO himself has said he would take care of if he took ownership. of the company.

After his initial $44 billion bid in April to buy Twitter, Musk backed out of the deal, saying Twitter misrepresented the number of fake “spam bot” accounts on its platform. Twitter sued and a Delaware judge gave both sides until October 28 to adjust the details. If not, there will be a trial in November.

Leave a Comment

Your email address will not be published. Required fields are marked *