Elon Musk is going ahead with his ‘brutal’ firing plans, Bloomberg reported. Soon after he took control of Twitter on October 28, he fired top executives of the company, including the CEO and chief legal officer.
Now, the billionaire is planning to axe about 3,700 jobs, or half of the company's workforce in a bid to cut costs.
Twitter's new owner will inform the staff affected on Friday, according to the report.
Bloomberg also reported that Musk intends to reverse the social media company's existing work-from-anywhere policy and will require employees to work from the office though some exceptions could be made.
Earlier, Musk, in a tweet, had denied a New York Times report that said he was planning to lay off Twitter employees before November 1 to avoid stock grants due on the day.
As per reports, Musk told investors that he 'would take Twitter private, reduce its workforce, roll back its content moderation rules and find new revenue streams.
Billionaire Elon Musk has reportedly come up with a new twist in the Twitter sale saga. According to media reports before Musk took over, he planned to fire nearly 75% of the social media company’s workforce. The report cites the source of this information as some interviews and documents accessed by them.
According to the report, Musk has already told investors about his plan to fire these employees, most likely in the coming months. It even mentions that he plans to cut Twitter’s employee base to 7,500 workers, leaving the company with a skeleton crew.
A 75 per cent headcount cut would indicate, at least out of the gates, stronger free cash flow and profitability, which would be attractive to investors looking to get in on the deal. That said, you can't cut your way to growth,” Wedbush analyst Dan Ives was quoted as saying by AP.