Elon Musk intends to lay off 50% of the workforce at Twitter, in an effort to slash costs, according to Bloomberg sources. On November 4, the new owner of Twitter plans to let affected staff members know. Musk also intends to change the company’s present work-from-anywhere philosophy, so the remaining personnel would be asked to go to offices. According to sources, some exceptions might yet be made.
Musk must come up with ways to cut back on a company’s expenses that he believes he overpaid. The billionaire committed to paying $54.20 per share in April, just as markets started to fall. After months of trying to back out of the deal, he allegedly claimed that the company had misled him about the prevalence of phoney accounts. Up recent weeks, after the San Francisco-based company had launched a lawsuit to make sure Musk keeps his promise, Musk gave in and chose to complete the transaction under the predetermined terms.
According to a source with knowledge of the issue, senior members of the product teams received instructions last week to aim for a 50% personnel reduction. Engineers and directors at Tesla, led by Musk as well, looked at the names. The sources claim that layoff lists were made and graded based on the contributions workers made to Twitter’s code while they were employed by the company.
While Musk and a committee of advisers discussed various ideas for job reductions and other policy changes at Twitter, the specifics of the personnel reduction may yet change. According to two of the participants, in one scenario, those who are laid off will receive severance pay equivalent to 60 days.
Employees at Twitter have been planning for layoffs since before Musk took over and ousted a significant section of the senior management team, including CEO Parag Agrawal. In the days that followed, more executives left, including the chief marketing officer Leslie Berland, the chief customer officer Sarah Personette, and the vice president of global client solutions Jean-Philippe Maheu.