The deal isn’t finalized yet, but planning is in progress Elon Musk after taking over Twitter apparently a massive job cut. He said to potential investors that he would reduce the number of employees from 7,500 to around 2,000, the company writes “Washington Post”
. That would be about 75 percent of the employees of the short message service. The paper relies on insiders and confidential documents. Musk and Twitter initially did not comment.
After months of back and forth, Musk’s $44 billion takeover of Twitter is expected to be completed by the end of October – if trouble doesn’t break out again. The responsible judge has imposed a deadline: If the purchase is not completed by October 28th, there will still be a court case.
After an interim retirement, Musk had At the beginning of October, surprisingly renewed its purchase offer. However, he made the condition that the court case surrounding the takeover – in which his chances were considered relatively slim – be settled. Twitter rejected this. The company is suspicious because Musk makes his offer dependent on financing and may still be keeping a back door open. Musk had on Wednesday at the Presentation of Tesla’s latest quarterly figures reiterated that he and other investors “obviously” paid too much for the online network.
Management is said to be planning massive savings as well
Even if the deal doesn’t go through, they’d have to be loud “Washington Post”
many employees fear for their jobs. Twitter’s current management plans to cut the company’s payroll costs by about $800 million by the end of next year. As a result, this would mean that Twitter employees would either have to forego a large salary or cut back on a quarter of the workforce, the newspaper reports on the basis of the documents viewed. Twitter is also planning major cuts to its infrastructure, including the data centers that keep the site running for more than 200 million users who log in daily.
Ex-Twitter manager: Twitter overstaffed
The Washington Post quoted data scientist Edwin Chen, who was once responsible for Twitter’s spam and health metrics, as saying that users would feel the effects of a possible job cut immediately. Chen said he believes Twitter is overstaffed.
But Musk’s proposed cuts are “unimaginable” and would expose Twitter users to the risk of hacks and a possible flood of objectionable content like child pornography. “It would be a cascading effect,” he said, “if services went down and the remaining staff didn’t have the institutional knowledge to get them going again” and then ended up resigning, demoralized.
Twitter lawyer denies layoff plans
According to the Washington Post report, a Twitter lawyer tried to calm employees down in a nightly email. Musk did not inform the company about his alleged layoff plans. The closer the possible conclusion of the takeover gets, the more the employees have to prepare for “a lot of public rumors and speculation”, quotes the financial news service Bloomberg from the Mail
. Since the merger agreement, there have been no “plans for company-wide layoffs,” the lawyer denied.