UNITED STATES: Elon Musk, a billionaire, plans to lay off Twitter’s employees by approximately 75% after he closes his long-delayed deal to take over Twitter, which is going to impact users’ experience because of retrenchment.
In a report that was published recently, it was stated that interviews and documents showed that Elon Musk told prospective investors that he plans to terminate Twitter’s workforce from 7,500 to around 2,000.
No matter who owns the company, it is expected that there will be job layoffs in the next few months, the report stated.
Elon Musk’s plan to take over the business was fetched in news at a tough moment for Twitter.
In July, the company stated that it had already “significantly slowed hiring” amid a broader economic downturn in the tech industry, when most companies were laying off or freezing hiring.
There are “no plans for any company-wide layoffs,” says a memo that Twitter issued internally.
In the meantime, low morale has been cultivated by the Elon Musk purchase drama, which has caused a mass exodus of workers. Following Elon Musk’s attempt to back out of the $44 billion takeover deal, Twitter has been locked in a legal battle with the business mogul for months.
“Twitter appears to be rudderless and on a bit of a downhill spiral, and Elon Musk has just made it worse and it looks like it is going to be rough sailing for some time”, Carl Tobias, Williams Chair in Law at the University of Richmond, said.
Despite claims from the social media company’s human resources department that mass layoffs were not in the execution plan, some sources revealed that serious plans to terminate employees and minimise infrastructure costs were made even before Musk made a purchase offer.
Tobias predicts that the layoffs will affect Twitter’s daily operations, particularly its capacity to police dangerous content and address security issues.
This comes after a harsh whistleblower assessment in September accused Twitter of being deficient on both counts and cited “egregious” flaws within the organisation.
A series of legal disputes were sparked between Musk and Twitter when, in May, Musk attempted to back out of the agreement to purchase Twitter, claiming the firm had misrepresented the number of bot and spam accounts on its network.
Earlier this month, Musk made a U-turn and declared he would carry out the deal under its original terms.
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