Ever since the deal started between Twitter and Elon Musk, some new news about this social media company has come to the fore. At the same time, the information that is coming out about this is shocking. According to the news, Elon Musk, the world's richest man, has told his potential investors about this deal that he has prepared a plan to lay off 75 percent of Twitter's 7500 employees.
If and when Elon Musk acquires ownership of the social media company, he intends to fire the majority of Twitter's employees, according to a report.
According to the report, Mr. Musk has informed potential investors in his purchase of Twitter that he plans to lay off approximately 75% of the company's 7,500 employees, leaving it with a skeleton staff. Documents and unnamed persons familiar with the discussions were mentioned by a newspaper.
Even while job layoffs were anticipated regardless of the sale, Mr. Musk's plans are much more drastic than anything Twitter had in mind. In the past, Mr. Musk himself has hinted at the necessity to reduce the company's workforce, but he never provided a specific figure, at least not in public.
According to Wedbush analyst Dan Ives, a 75% personnel cut would suggest, at least initially, higher free cash flow and profitability, which would be appealing to investors eager to get in on the sale. That stated progress cannot be achieved by cutting corners.
Mr. Musk withdrew his $44 billion sales agreement for Twitter in April, claiming that Twitter had overstated the number of fake "spam bot" accounts it had on its site. A Delaware judge has given the parties until October 28 to resolve the issues raised by Twitter's lawsuit. If not, a trial will take place in November.