Tech

Elon Musk says preparing to eliminate half of the workforce on Twitter to reduce costs


Elon Musk plans to eliminate about 3,700 jobs at Twitter, or half of the social media company’s workforce, in a bid to reduce costs following its $44 billion (about 3.6 lakh crore) acquisition of the company. themselves, according to people with knowledge of the matter. Twitter’s new owner aims to notify affected employees on Friday, the people who requested anonymity discussed the plans not to go public. Musk also intends to reverse the company’s existing work-from-anywhere policy, requiring remaining employees to report to the office — though there may be some exceptions, the people said.

Musk and a team of advisers considered a range of scenarios for job cuts and other policy changes at their San Francisco headquarters. Twitter, these people added that the terms of the reduction in headcount could still change. In one scenario under consideration, laid-off workers would receive 60 days’ worth of severance pay, two of them said.

After arranging the layoffs, Twitter Chief Accountant Robert Kaiden left the company, becoming one of the last executives before Musk’s C-suite left, according to people familiar with the matter.

A Twitter spokesperson did not immediately respond to a request for comment.

Musk is under pressure to find a way to cut the costs of a business he thinks he’s overpaid. The billionaire agreed to pay $54.20 (about Rs 4,500) for a share in April just as the market crashed. He then tried for months to get out of the trade, alleging that the company misled him about the prevalence of fake accounts. Twitter sued to force Musk to make good on his deal, and in recent weeks Musk has caved in, resigning to close the deal on agreed terms. The private purchase agreement ended on Thursday.

Twitter employees have had to prepare for layoffs since Musk came to power and immediately removed much of the top executive team, including CEO Parag Agrawal, chief financial officer Ned Segal , and senior legal staff Vijaya Gadde and Sean Edgett. In the days that followed, other departures included Chief Marketing Officer Leslie Berland, Chief Customer Officer Sarah Personette and Jean-Philippe Maheu, Vice President of Global Customer Solutions.

Musk has anointed himself “Chief Twit” in his bio on social networks. Bloomberg reported earlier that he would take on the role of interim CEO himself. He also disbanded the company’s board and became the sole director, later saying it was “temporary”.

Over the weekend, several staff members with director and vice president positions were cut, people familiar with the matter said. Other leaders were asked to make lists of employees on their teams that might be cut, the people said.

A person familiar with the matter said that this week, senior personnel across product teams were asked to set a goal of reducing headcount by 50%. The person said that engineers and executive-level staff from Tesla Inc., the automaker also run by Musk, reviewed the list. These people said layoff lists were compiled and ranked based on individuals’ contributions to Twitter’s code during their time at the company. Reviews were performed by both Tesla personnel and Twitter management.

Fears of dramatic layoffs began to swirl around Musk’s acquisition trend, as potential investors were told he would eliminate 75% of the workforce, at around 7,500 by the end of the year. 2021. Musk later denied that the cut. will be so deep.

In recent weeks, Musk has begun to hint at his HR priorities, saying he wants to focus on the core product. “Software engineering, server operations and design will rule the period,” he tweeted in early October.

Musk is also trying to generate more revenue. The company will soon start charging verification fees.

The badges will be part of a one-month subscription of $8 (approximately Rs 700. Users who already have a blue verification badge will have a multi-month grace period before they need to pay). give the badge or lose it, said one of the people who requested anonymity to discuss the plans not to go public.

© 2022 Bloomberg LP


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