Twitter CEO Elon Musk has plans to eliminate 3,700 jobs, or 50% of the workforce, at the social media platform in a measure aimed at cutting costs.
What Happened: The Tesla Inc TSLA CEO, also Twitter’s new owner, will inform staff of the coming redundancies on Friday, Bloomberg reported, citing people familiar with the matter.
Also on the chopping block is Twitter’s work-from-anywhere policy and the remaining employees will be asked to report to offices with some exceptions, as per the report.
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The final number of staff cuts is still uncertain and could change, Bloomberg noted.
The laid-off workers will reportedly be offered 60 days’ worth of severance pay, two Bloomberg sources were quoted as saying.
Twitter did not immediately respond to Benzinga’s request for comment.
Why It Matters: Musk purchased Twitter for $44 billion and is under pressure to cut costs after making a deal in which he overpaid, noted Bloomberg.
The billionaire entrepreneur last week denied plans to fire 75% of Twitter’s staff but had not explicitly rejected layoffs.
He told employees they had nothing to worry about if they were “significant contributors” to the platform.
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Image and article originally from www.benzinga.com. Read the original article here.