Elon Musk is planning massive layoffs on Twitter – according to The Verge , about 3,800 employees could be laid off, Bloomberg indicates a lower figure – 3,700.
It is planned that employees will be informed of the layoff on Friday, and they may also be given 60 days of severance assistance. Musk is also set to change the policy to allow employees to work from home “permanently” — which is consistent with messages sent by the billionaire to his pal Jason Calacanis (correspondence discovered in Musk’s lawsuit while he was still trying to back out of buying Twitter), as well as the position Ilona about refusing to work remotely at Tesla.
Last week, after months of court cases, Musk finally acquired Twitter for $44 billion . And NYT journalists directly connect this amount with the upcoming changes that await the company. The acquisition was the biggest leveraged buyout of a technology company in history – to close the deal, Musk, the world’s richest man, dumped about $13 billion in debt on the company (which hasn’t made a profit for eight years).
Lol we’re fucked https://t.co/obO3GvojLy pic.twitter.com/pvyYhutBiT
— Jason Schreier (@jasonschreier) November 1, 2022
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Last year, Twitter’s interest expense was about $50 million. With the new debt taken on as part of the deal, they will now rise to around $1 billion a year. This means that the company makes less money per year than it owes to its creditors. To make ends meet, Musk will likely have to cut costs significantly, including by laying off workers.
Musk has already said goodbye to most of the leadership team, including chief executive officer Parag Agrawal, chief financial officer Ned Segal, and senior lawyers Vijaya Gadde and Sean Edgett. In the following days, CMO Leslie Berland, CCO Sarah Personet and Jean-Philippe Mahe, who was vice president of global client solutions, also quit.
Bloomberg sources say the rest of the executives were asked to compile lists of workers on their teams who could be cut. Senior product team members were asked to cut headcount by 50%. Tesla engineers and directors have already reviewed these lists based on the contributions of individuals to Twitter throughout their time at the company. The evaluation was carried out by both the automaker’s staff and social network managers.
Other changes Musk is introducing at the company include a price increase and a change to Twitter Blue subscription terms . The service will now cost $8 per month (instead of $4.99) for the US (in other countries, the price will be adjusted according to “purchasing power parity”). Priority subscription will also be available to everyone (not just VIPs): in addition to the verified profile icon (with a blue checkmark), subscribers will have access to longer audio and video messages and will see half as many ads.
Previously, another amount was called – $ 19.99 – but such a subscription cost caused criticism from users, including famous ones . Writer Stephen King wrote, “To hell with it, let them pay me.”
Musk, in turn, offered a lower cost and reacts to further criticism traditionally – with memes:
pic.twitter.com/kGncG7Hs3M
— Elon Musk (@elonmusk) November 2, 2022
Musk will also create a “content moderation board” – it will be he who will decide on the unblocking of accounts (in particular, Donald Trump’s pages). In a tweet Friday, Musk said the council would have “very diverse” viewpoints – no other details on how many members the council would have, how they would be selected, and how the body would differ from the content moderation and policy teams (which already exist at the company). ) has not been published.
8 social networks – alternatives to Twitter (for those who don’t like Elon Musk?)
