According to media reports on Thursday, citing people familiar with the matter, TeslaAfter CEO Elon Musk took over Twitter, he plans to cut about 3,700 jobs, about half of the social media company’s workforce.
Last week, Musk completed the $44 billion acquisition of Twitter and officially became the actual controller of Twitter. It is reported that the purpose of the layoffs is to reduce costs after its $44 billion acquisition.
Musk plans to meet with people in Twitter’s inner circle to discuss layoffs, according to internal communications cited by the media.
The Financial Associated Press previously reported that several Twitter executives were fired by Musk. Chief executive Parag Agrawal, head of legal Vijaya Gadde, chief financial officer Ned Segal and general counsel Sean Edgett have all been notified of their dismissal for “good cause”.
Meanwhile, after the deal closed last week, Musk quickly brought many of his trusted advisors and employees to Twitter to advise him on his next steps
Musk had said before the acquisition that it would out 75% of its workforce. When he dosed the acquisition last Wednesday, he pledged himself not to lay off so many jobs when he took over. But for now, Musk’s layoff plan has not given up.
Musk also intends to change Twitter’s existing remote work, the people said Policy requires remaining employees to report to the office, except in exceptional circumstances.
Improve company profit margins
After acquiring Twitter last week, Musk is working to improve the company’s profit margin including cutting headcount and operating expenses and finding new ways to generate revenue
According to statistics, between 2010 and 2021, Twitter’s total revenue is about 25 billion us dollars, R&D expenditure is about 7.8 billion US dollars, and the cumulative net income is about 13 billion US dollars
To that end, Musk is also rolling out a subscription product that charges $8 a month to users with a blue authentication badge (“Blue V) on the platform and authenticates them or loses their Certified”
Before Musk’s acquisition of Twitter, users could subscribe to Twitter Blue for $4.99 a month to get some exclusive features, including an “edit” button.