Documents Show How Twitter Plans To Cut Its Staff

According to interviews and documents acquired by The Washington Post, Twitter is planning to lay off a large portion of its personnel in the coming months. This will have a profound effect on the company’s capacity to police offensive material and head off data security disasters.

In his pitch to investors, Elon Musk said he would lay off approximately 75 percent of Twitter’s 7,500 employees, reducing the workforce to just over 2,000.

Documents Show How Twitter Plans To Cut Its Staff
Documents Show How Twitter Plans To Cut Its Staff

Big savings are anticipated even if Musk’s Twitter venture fails, which there is currently little evidence of. According to corporate records and discussions with persons acquainted with the company’s deliberations, the present management of Twitter expected to reduce the payroll by around $800 million by the end of next year, an amount that would entail the departure of about a quarter of the employees. Also on the chopping block were the data centers that keep the site running for the daily 200 million visitors.

Twitter’s eagerness to sell to Musk may be understood in light of the depth of the cutbacks, which have not been previously published. In spite of its hostility, Musk’s $44 billion offer is a golden ticket for the faltering firm, allowing its leadership to avoid embarrassing pronouncements that may have demoralized the team and hampered the service’s capacity to battle disinformation, hate speech, and spam.

Former Twitter data scientist in charge of spam and health metrics and current CEO of content-moderation startup Surge AI, Edwin Chen, claimed that millions of users will feel the effects of such layoffs instantly. While he agreed that Twitter had too many employees, he called the budget cutbacks suggested by Musk “unimaginable,” saying they would put Twitter users at danger of hackers and exposure to unpleasant content like child pornography.

It would have a domino effect, he added, with services collapsing and the surviving staff without the expertise to get them back up. This would leave them feeling hopeless and encourage them to abandon their jobs.

In an email to staff Thursday night, Twitter’s senior lawyer Sean Edgett said the business had not heard anything official from Musk regarding his intentions. Edgett said in an email seen by The Post that Twitter’s own, smaller-scale “cost reduction discussions” were put on hold until the merger deal was completed.

Those familiar with the company’s internal Slack chats said that Twitter workers responded to the news with rage and resignation, while also supporting one another and making jokes about the company’s recent struggles.

The deal between Twitter and Musk is scheduled to conclude on October 28. People involved with the discussions who spoke on the condition of anonymity to disclose internal deliberations say that closing preparations are going ahead in apparent good faith after months of legal wrangling. In the event of a successful closing, Musk would take over ownership of Twitter instantly.

We reached out to Twitter for comment, but did not get a reply right away.

Wedbush Securities analyst Dan Ives said, “The easy thing for Musk was purchasing Twitter, and the hard part is mending it.” We face a titanic task if we want to reverse this situation.

Nell Minow, vice chair of ValueEdge Advisors and a specialist in corporate governance, has said that Musk is likely trying to sell his grandiose ambitions to investors but that he would confront difficulties in carrying them out.

She warned that he must be able to demonstrate the results of his proposed reduction. How will he replace it, with AI I wonder?

During town hall meetings, company leaders have assured workers that there are no plans to lay off any staff in the near future. Musk was asked a hard question regarding layoffs during the one town hall he attended in June. He said that he could not see why companies would want to keep on poor performers.

The new information, which is reflective of talks over the last several months, emphasizes the radical nature of Musk’s intended makeover of Twitter in light of the difficulty of turning a profit at the long-struggling firm. Compared to other social media platforms like Meta and Snap, Twitter has never been as profitable or as popular. And former CEO and co-founder Jack Dorsey backed Musk’s offer in large part because of Musk’s proposal to take the business private, relieving pressure to appease Wall Street.

When asked for comment, neither Musk nor his representatives provided any.

Twitter has been severely damaged by the months-long roller coaster of Musk’s on-again-off-again quest for control and the accompanying heated court fight. Staff turnover is high, new hires are being sluggish to come in, projects are on hold, and the stock is very unstable.

In an interview with Business Insider, Manhattan Venture Partners managing partner Andrea Walne said she and her other investors do not value Twitter at more than $10 billion to $12 billion. During Wednesday’s earnings call for Tesla, Musk said that he and his investors were “clearly overpaying” for the site. Walne did not provide any kind of response to our inquiries.

 

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