Illinois

Report: Twitter plans to lay off about half of its staff

Twitter is about to start laying off employees as new billionaire owner Elon Musk moves swiftly after a major acquisition to make the messaging platform financially sound .

According to a company-wide email seen by Agence-France Presse, Twitter employees will receive word of their fate in an email at the opening of business on Friday, California time.

The Washington Post, The New York Times, Bloomberg News and others reported that about half of Twitter’s 7,500 employees would be laid off, although numbers were not disclosed.

“We are going through a difficult process of reducing our workforce around the world to put Twitter on a healthy trajectory,” the email said.

Twitter did not immediately respond to a request for comment on the reported job cuts.

But as early as Friday there were numerous reports that it had already started.

Rolling Stone said:

Among them was Twitter’s head of internal communications, Julie Steele, who used the word “retirement.”

“Twitter is so special,” she tweeted. “Four years later, I leave with the best experience I could have ever imagined and an unbreakable bond with many Tweeps.My head is held high and I know I gave it my all. I know. @TwitterComms: I have a lot to be proud of. It’s time to fly higher! #1 team. “

At the same time, layoffs were already being contested in court. The employee filed a class action lawsuit on Thursday, alleging that Twitter failed to provide employees with his 60-day notice, which is required by federal and California law.

Twitter employees have been preparing for this kind of bad news since Mask It completed a huge $44 billion acquisition late last week And immediately set about dissolving the board of directors and firing the chief executive officer and top managers.

According to Wedbush analyst Dan Ives, Musk overpaid Twitter about $20 billion. told CBS Moneywatch He believed billionaires would be forced to cut 30% to 50% of their company’s workforce. In the most recent quarter, Twitter posted his $270 million loss, which saw revenue decline as advertising growth slowed.

“For overpaying Twitter by about $20 billion, Musk has a lot of trees to chop down to try and get the money back for himself and his investors,” Ives said.

The workplace and employee reviews, as well as other projects Musk mandated, were said to be so exhaustive and arduous that some engineers even spent weekends sleeping at Twitter headquarters.

An email sent Thursday told workers to go home and not come to work on Friday.

“Our offices are temporarily closed and access to all badges is suspended,” the email said. If you are on your way to the office, please turn around and go home. ”

The email acknowledges that Twitter is going through an “incredibly difficult experience.”

“We recognize that this affects many individuals who have made valuable contributions to Twitter, but unfortunately this action is necessary to ensure the company’s success moving forward.”

According to multiple reports, the company also plans to require retained employees to return to the office.

Nearby business owners aren’t happy to learn that many people will lose their jobs on Twitter, but they hope that having other employees back in the office will cheer them up. CBS Bay Area reported.

Katherine Chao, Kagawaya’s general manager, is uneasy about one of the changes, but hopes another will be good for her restaurant.

“It’s not great when they fire people. I don’t want anyone to lose their job,” she said. “But if they make some kind of management change and require employees to go back to work even if it’s part-time, that’s great. Come have lunch with us.” .”

Musk is also exploring ways Twitter can quickly increase revenue.

His latest idea is Charge Twitter users who receive a blue “verified” badge $8 per month We generally ensure that accounts are genuine.

Reports this week say Musk wanted to charge $20 a month, but faced backlash, including from best-selling novelist Stephen King. This was followed by swearing.

Musk appeared to be negotiating with King on Twitter: “We have to pay our bills somehow! Twitter can’t be totally dependent on advertisers. How about $8?”

Musk says he wants Twitter’s revenue to grow from $5 billion last year to more than $26 billion in 2028.

Top global companies such as General Mills and Volkswagen suspended advertising on Twitter on Thursday. This is because Musk is under increasing pressure to turn his platform into a successful business.

we. Major advertiser .auto was the first major advertiser to stop advertising after its acquisition last week.

Officials and civil rights groups have expressed concern that Musk will not only expose the site to disorderly hate speech and misinformation, but will also reinstate banned accounts, including those of former President Donald Trump. there is

Advertisers are Twitter’s main source of revenue, and Musk has tried to calm his nerves by reassured him that the site won’t become a “free-for-all hell.”



https://www.cbsnews.com/news/reports-twitter-lay-off-half-its-staff-elon-muck/ Report: Twitter plans to lay off about half of its staff

Related Articles

Back to top button