Wednesday, November 30, 2022

Elon Musk Won’t fire 75% of Twitter Staff; Company HR Reassures Employees

The Washington Post reported on Thursday that Elon Musk informed the prospective investors that he plans to let go of around 75% of Twitter’s staff as part of his deal to acquire the social media company. According to the report, no matter who owns the company, layoffs are anticipated in the coming months, which cites interviews and documents.

The news of Musk’s plans, should he eventually take control of the company, comes at a difficult time for Twitter. In July, the company reported that it had already “significantly slowed hiring” in response to a broader economic downturn in the tech industry. Many companies have recently announced hiring freezes and layoffs.

Bloomberg reported on Thursday evening that an internal Twitter memo stated there were no plans for company-wide layoffs.
Meanwhile, low morale is ongoing with the acquisition drama involving Musk. The situation has caused a mass exodus of workers. Since Musk attempted to back out of the $44 billion takeover deal, Twitter was in a legal battle with the billionaire for months. Musk later changed his mind and announced earlier this month that he would proceed with the takeover.

“Twitter appears to be rudderless and on a bit of a downward spiral, and it has only been exacerbated by Musk,” Carl Tobias of the University of Richmond said. “It looks like it will be rough sailing for some time.”

The Washington Post reported extensive plans to lay off employees and reduce infrastructure costs before Musk’s offer to buy the company. Human resources employees at the social media company assured employees that mass layoffs were not in the works.

While the current management of Twitter planned to lay off only 25% of the staff, a new report indicates Musk wants to cut the staffing from 7,500 to approximately 2,000 individuals.

Tobias stated that the layoffs would undoubtedly affect Twitter’s daily operations, including its capacity to moderate harmful content and combat security issues. The dilemma comes after a scathing report from a whistleblower in September accused Twitter of failing on both fronts, citing “egregious” shortcomings at the company.

According to The Washington Post, Twitter had already planned to reduce funding for infrastructure sites, such as its data centers. Musk has stated that if he were the owner of Twitter, he would relax content moderation policies and possibly transition the business to a subscription-based revenue model.

The current conflict between Musk and Twitter began in May when Musk attempted to back out of a deal to acquire the company, alleging Twitter understated the number of bot and spam accounts on its platform. Twitter accused him of “conjuring” a reason to withdraw.

The acrimonious dispute reached the court when Musk announced he would proceed with the deal under its original terms. A judge has stipulated that the transaction must be final by next Friday, so the billionaire is now securing the necessary financing to close the deal.