Elon Musk mulling job cuts at Twitter to make money
What's the story
As the world still tries to wrap its head around Elon Musk's acquisition of Twitter, new report suggests that the world's richest man is mulling cut jobs at the microblogging platform. During his discussions with banks to raise funds for his eventual takeover of Twitter, Musk floated the idea of laying off employees to improve the company's net profit, according to Bloomberg.
Context
Why does this story matter?
Musk's takeover of Twitter has seemingly opened a can of worms. What started as a fight for free speech has now reached job cuts. It is early to infer anything from Musk's discussion with bankers as the funding doesn't have any contingencies. However, employees are nervous with how things are taking shape and we will get more clarity once the acquisition is completed.
Stance
Musk talked about improving Twitter's efficiency with bankers
Reports of Musk's plan to cut jobs at Twitter contradict his previous statements. At TED 2022, Musk said, "This is not a way to sort of make money," regarding his desire to acquire Twitter. The Washington Post has reported that Musk spoke about making the company more efficient in his discussions with bankers. Insiders suggest that this could include job cuts as well.
Business strategy
Musk suggests TikTok's business model in meeting with bankers
Musk's unusual acquisition of Twitter has left people scrambling for ideas to make sense of the deal. The ideas he shared in "working groups" with bankers provide us an insight into the billionaire's mind. One of the ideas brought up by Musk was to pay influencers to create content along the lines of TikTok. He also talked about starting subscription services to sell.
Musk v/s employees
Twitter's policy department has been feeling the heat
Is Musk considering job cuts? We don't know the answer to this, but if his past actions are anything to go by, that might just happen. He had previously dissolved the PR department at Tesla. Add to that his recent tweets that brought negative attention to Twitter's employees. The company's policy department has repeatedly felt the brunt of the billionaire's wrath.