Following his $44 billion acquisition, #Elon Musk intends to cut around 3,700 workers at Twitter Inc., or half of the social media company’s workforce, in an effort to reduce costs. This is according to sources with knowledge of the situation.
According to the people, who asked for anonymity to discuss private arrangements, Twitter’s new owner intends to inform impacted employees on Friday. The remaining staff will be asked to go to offices, and Musk also plans to alter the company’s current work-from-anywhere policy, though some exceptions may still be granted, according to the sources.
The sources stated that as Musk and a committee of advisers explored other alternatives for job reductions and other policy changes at San Francisco-based Twitter, the specifics of the personnel reduction might yet change. Two people said that under one scenario, employees who are laid off will receive severance pay equivalent to 60 days.
Musk is under pressure to cut back on the company’s expenses since he feels like he overpaid them. The billionaire chose to pay $54.20 per share in April, just as markets were declining. He then tried for months to get out of the agreement by arguing that the company had misled him about the prevalence of bogus accounts. Musk capitulated and chose to complete the acquisition under the pre-established terms in recent weeks after Twitter sued to compel Musk to keep his word. On Thursday, the buyout agreement was completed.
Employees at Twitter have been prepared for layoffs since before Musk took over and swiftly fired a significant section of the top management team, including Chief Executive Officer Parag Agrawal, Chief Financial Officer Ned Segal, Senior Legal Staffers Vijaya Gadde and Sean Edgett. In the days that followed, chief customer officer Sarah Personette, vice president of global client solutions Jean-Philippe Maheu, and chief marketing officer Leslie Berland all left their positions.
Musk has recently begun to make suggestions about his hiring objectives, stating that he wants to concentrate on the main product. Early in October, he tweeted, “Software engineering, server operations & design will rule the roost.”
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