Musk plans to cut 75% of his employees after acquiring Twitter…Good news for the management
Musk told prospective investors he would lay off 75 percent of his 7,500 employees once the Twitter acquisition was completed.
In a town hall meeting with Twitter employees in June, Musk also hinted at job cuts, saying, “I can’t understand why we should continue to hire low-performing workers.”
Meanwhile, according to internal documents obtained by WP, Twitter executives were already planning to cut jobs even before the deal with Musk.
Twitter executives plan to cut the company’s total salary by $800 million by the end of 2023. To this end, the government plans to reduce the cost of some infrastructure and close the data center by reducing the number of employees, or 25 percent of the total employees.
WP pointed out, “For a struggling company, the deal with Musk is like a golden ticket.” Mass layoffs can undermine employees’ morale and hamper the removal of false information, hate speech, and spam accounts on Twitter, as if Musk takes over the company, the company’s management will not have to directly proceed with the job cuts.
Former data analyst Edwin Chen said, “Musk’s plan to cut jobs is unimaginable and will bring about a waterfall effect.” Furthermore, Chen said, “The remaining employees on Twitter will not have the expertise to properly back up even if the service is suspended,” adding, “They will be completely demoralized and eventually want to leave the company.”
Twitter said in Tesla’s third-quarter earnings announcement the previous day, “The acquisition amount I and other investors pay on Twitter is naturally too much, but I think Twitter’s long-term potential is much greater than its current value.” 안전놀이터
Earlier, a Delaware court ordered Musk to acquire Twitter for $44 billion by the 28th. Musk and Twitter are reported to be on track for the process