Elon Musk could axe 50% of Twitter employees
What's the story
At Twitter, everyone has been dreading mass layoffs ever since Elon Musk took over the company. Now, we have a better idea of how many people could be affected. According to The Verge, Musk may lay off approximately 3,800 employees, while Bloomberg reported that 3,700 is the number. Either way, the difficult moment Twitter employees have been bracing for is not far away.
Context
Why does this story matter?
Musk acquired Twitter for $44 billion, out of which $13 billion was debt financing. This puts a lot of pressure on the tech mogul to turn around the company's financial fortune. He has the difficult task of boosting revenue while reducing expenses in front of him. Rationalization of headcount is one of the ways to reduce expenses, and Musk has chosen it.
Layoff
Musk will announce the layoff plans on November 4
Musk is set to axe about half of Twitter's workforce of approximately 7,500. Bloomberg reported that Musk will inform the employees about his plan on November 4. The new CEO is reportedly discussing matters related to headcount reduction with his advisors, including former PayPal executive David Sacks. Musk's people have been reviewing Twitter's staff to identify those who aren't needed anymore.
Remote work
Musk to change Twitter's remote work policy
Twitter employees are set to face some changes in their working conditions as well. Musk has never been a big fan of remote work. According to Bloomberg, he wants to change Twitter's work-from-home forever policy. This change could lead to further departures from the company. In one of the text messages revealed during the court case, we saw Jason Calacanis suggesting this to Musk.
Changes
Musk has been making sweeping changes in Twitter
Twitter has been undergoing several changes since Musk took over the company a week ago. The billionaire, himself a regular tweeter, has a vision for the company. He began by firing executives. He then increased Twitter Blue's price and included verification or the 'blue tick' along with it. He also has plans to set up a 'content moderation council' for Twitter.