After a media outlet reported that billionaire Elon Musk is considering layoffs at the company, Twitter Inc (TWTR Stock) on Thursday clarified to its staff that there are no plans for company-wide layoffs since it signed a deal to be acquired by Musk. The news came after Twitter (NYSE:TWTR) signed a deal to be acquired by Musk.
According to a person who read the email, Twitter General Counsel Sean Edgett sent an email to staff on Thursday in which he stated that the firm does not plan to lay off any employees.
Twitter (TWTR Stock), Cost Reduction and Elon Musk
According to interviews and papers, the Washington Post claimed earlier on Thursday that Elon Musk informed potential investors in his attempt to purchase Twitter (NYSE:TWTR) that he wanted to get rid of approximately 75% of the company’s 7,500 workers. The story was based on the information provided by Musk.
The revelation by Bloomberg News that officials in the Biden administration are debating whether or not the United States should conduct national-security investigations of any of Elon Musk’s companies led to a drop in the price of Twitter shares on Friday.
On Thursday, the price of a share of Twitter was $52.44. Recently, the stock moved around 5% down while the whole market was trading upward.
According to a story in the Washington Post, layoffs are likely to take place within the next several months regardless of who now controls the firm.
According to the source, the present management of Twitter (NYSE:TWTR) wanted to reduce the company’s salary by around $800 million by the end of the next year. Such a reduction would result in the departure of roughly a quarter of the employees.
A request for comment from Reuters was not immediately met with a response from Twitter.
According to a report published by the Washington Post, documents showed extensive plans to push out staff and cut down on infrastructure costs were already in place before Musk offered to buy the company. The human resources staff at the social media company told employees that they were not planning for mass layoffs, but the documents showed that these plans were already in place.
Musk had attempted to back out of the contract to purchase Twitter back in May, arguing that the firm had overstated the number of bot and spam accounts on the social media network. This move kicked off a series of litigation between the two parties involved in the dispute.
Musk announced earlier this month that he would abandon his previous position and continue moving forward with the deal under its initial parameters.
Featured Image- Megapixl @ Dolphfyn
Author Valerie Remorosa 
