Elon Musk could fire 75% of Twitter employees: Here's why
Most Twitter employees are not fans of Elon Musk acquiring the social media company. It seems that the feeling is mutual. Musk plans to fire nearly 75% of Twitter employees to bring down costs, The Washington Post reports. The billionaire has time till October 28 to complete the acquisition. Twitter has frozen its employees' equity awards, signaling progress in the deal.
Why does this story matter?
Musk has been trying to bring in investors to fund the Twitter deal. However, many have reportedly not shown any interest. Most investors don't believe in the company's potential. This forces the billionaire to make some promises to rebuild investor confidence in the deal. Firing most employees seems to be one of his promises. Is it going to happen? We'll certainly find out later.
Musk has been talking to potential investors about layoffs
Musk has been trying to raise money to complete the Twitter acquisition. According to The Washington Post, he has been telling potential investors about drastic job cuts to bring down costs. Of the 7,500 employees in the company, we may see as much as 75% losing their jobs. Musk also plans to implement the controversial 'stack ranking' in the company, said the report.
Twitter management planned to fire nearly 25% employees
It seems that several Twitter employees may lose their jobs despite who's at the company's helm. The report said that the social media company has been planning job cuts even before Musk's bid. The company's management reportedly wanted to decrease its payroll by $800 million. That's a quarter of the workforce. Musk's cuts are bigger, but what Twitter had in mind wasn't smaller either.
What does Twitter have to say about the report?
Twitter has tried to set the record straight about potential mass layoffs. The Washington Post reported that people losing jobs is inevitable in the company. Sean Edgett, Twitter's General Counsel, emailed employees that there will not be any company-wide layoffs post Musk's acquisition or otherwise. This should give the employees some sense of calm amid chaos.
