Elon Musk claims there is “no choice” as Twitter begins mass layoffs, citing a daily loss of $4 million

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Last Updated on November 6, 2022 by Bitfinsider

Elon Musk, the new CEO of Twitter, has let go of nearly 50% of the company’s workforce. All Twitter employees received an email from the billionaire Thursday night alerting them of the status of their job.

“In an effort to place Twitter on a healthy path, we will go through the difficult process of reducing our global workforce on Friday,” the letter wrote. “This action is unfortunately necessary to ensure the company’s success moving forward.”

According to the message, “everyone will receive an individual email with the subject line: Your Role at Twitter … If your employment is not impacted, you will receive a notification via your Twitter email. If your employment is impacted, you will receive a notification with next steps via your personal email.” The letter goes on to say: “To help ensure the safety of each employee as well as Twitter systems and customer data, our offices will be temporarily closed and all badge access will be suspended. If you are in an office or on your way to an office, please return home.”

Musk said in a tweet on Friday that the layoffs were unavoidable given Twitter’s daily loss of more than $4 million. However, he noted that each employee who was let go received a three-month severance package, which is 50% more than what is needed by law.

Source: Twitter

Twitter’s chief of safety and integrity, Yoel Roth, stated on Friday that Musk has reduced Twitter’s overall headcount by 50%. He tweeted, “Yesterday’s reduction in force affected approximately 15% of our Trust & Safety organization (as opposed to approximately 50% cuts company-wide), with our front-line moderation staff experiencing the least impact.” As of December 31, 2021, Twitter had approximately 7,500 full-time employees, according to its annual report.

Employees of Twitter have filed a federal complaint accusing the social media giant of breaking the Work Adjustment and Retraining Notification (WARN) Act, which regulates notification of termination of employment.

A Massive Drop in Revenue

Friday’s tweet from Musk also stated that “Twitter has had a massive drop in revenue.” The social network business claimed that 90% of its revenue came from advertisements prior to his acquisition. However, significant businesses have reportedly ceased running advertisements on the network due to worries over how Musk could impact content management guidelines.

Source: Twitter

Musk has made the decision to charge users $8 per month in order to get a blue checkmark next to their names in an effort to bring in money for Twitter.

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