The Washington Post reported Thursday that Elon Musk’s desire to acquire Twitter would result in significant layoffs at the social media business. The reports stated that if Elon Musk had to acquire Twitter, he planned to lay off about 75% of the company’s 7,500 workers, making it one of the largest digital job cutbacks.
According to the Post’s reporting, based on interviews and papers, Musk has allegedly promised potential investors that he would let off over 75% of Twitter’s 7,500 employees as part of his proposal to purchase the firm for $44 billion.
Musk has informed potential investors that, if the transaction closes, he intends to lay off 75 percent of Twitter’s 7,500-person employees, which would severely hamper the site’s operation and severely hinder its capacity to censor material and assure users’ security.
Nonetheless, internal documents obtained by The Washington Post show that current company leadership planned to “pare the company’s payroll” by around $800 million before the Musk deal, resulting in a relatively moderate 25 percent reduction in the workforce and only resulting in around 1,900 job losses, in addition to “major” infrastructure cuts and data centre closures.
It was reported that Twitter’s present management had intended to reduce payroll by around $800 million before the end of the following year, which would entail the departure of about a quarter of the employees.
What Actually Happening With Workers at Twitter?
The social network business’s HR department assured workers that layoffs were not in the works. Still, records obtained by the Washington Post revealed significant preparations to push out personnel and dramatically cut infrastructure expenses before Musk’s bid to acquire the company.
Musk complained about Twitter’s price during Tesla’s earnings call for the third quarter of 2022 on Wednesday. After trying to back out of the agreement for three months, he finally decided to go through with his first $54.20/share offer for Twitter earlier this month. Though Musk and the other investors are “clearly overpaying” for Twitter at the moment, he believes the company has “long-term potential” that is “an order of magnitude bigger” than its present valuation.
Musk doesn’t have a firm grasp on several basic difficulties facing the business, some of which may be rectified by increased investment in critical areas. When it suited him, SpaceX and Tesla CEO Elon Musk didn’t hesitate to depend on a former Twitter chief of security and whistleblower, Peiter Zatko. Still, the urgent security and safety concern Zatko raised couldn’t be handled by dismantling the firm.
Again, a more human approach is preferable to relying only on a frugal algorithm when it comes to content filtering, a problem with which the firm struggles but which Musk shows little understanding. Sadly, if Musk gets his way, confidence and safety will take a major hit.
Depending on which services and job categories are reduced, Twitter employees in the Seattle region may be impacted by any future layoffs. In 2012, the firm established its first city location. A separate engineering office was opened in the heart of Seattle in 2014. At that time, the company employed fifty people. One year later, we had approximately one hundred workers in our office, more than twice the number we had the year before.
There are now over three hundred people working for Twitter in the Seattle region, according to a search on LinkedIn. A spokesman for JLL in Seattle confirmed that Twitter still occupies two floors in the Century Square building and is not actively seeking a subtenant.
After Musk sought to back out of buying Twitter in May because the firm had exaggerated how many spam and bot accounts were on the network, a series of lawsuits ensued. Musk said earlier this month that he is reversing and going through with the acquisition under the original conditions.