Will Elon Musk Really Fire Most of Twitter’s Employees?
Let’s treat all reports of his takeover plans with a pinch of salt.
Elon Musk is finally buying Twitter, and it could be disastrous for the company’s employees. Recently, it was rumoured that the Tesla CEO has been telling prospective investors that he will fire people to reduce costs. The entrepreneur needs to close the purchase of the social media platform by October 28th as that’s the deadline.
Elon Musk’s Twitter plan
Though some people are blaming Musk and the deal for the job cuts, it is a fact that job cuts were already planned. The company’s management wanted to let go of about a quarter of the workforce and save $800 million on the payroll.
Musk was also quoted saying that he is “obviously overpaying” for Twitter. A general partner at one of the firms involved in the deal shared, “We’re all trying to get out of it, to be honest.” It was also revealed that Musk plans to double the revenue in three years, but he hasn’t shared any plans regarding the same.
Twitter employees don’t need to panic as Musk might not even own Twitter until the Biden administration approves the deal. The government plans a “national security review” of the deal and even his Starlink satellite network.
Even if the Biden administration agrees to the deal, likely, Musk won’t fire most Twitter employees. It is possible that he might boost employment. A pitch deck Musk has been using to lure investors stated that he wants to see over 11,000 employees at the company, and the first 1,000 hires of engineers will be done by the end of this year. The deck also mentioned that there might be some layoffs in 2023. It also mentioned that he wants to give the employees an extra $2 billion in stock options.
It is possible that Musk is talking out of both sides of his mouth at once. He has done it before. First, he was eager to buy Twitter, and then he suddenly discovered that there were too many bots on the social media platform and tried to back out of the deal. So, the fate of thousands of Twitter employees is really unknown. No one can guarantee that they will have a job by the holidays. It’s sad but true.
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