Following Elon Musk’s takeover of the social network last week, Twitter employees anticipate a 50% reduction in overall staff. Musk is the CEO of Tesla and SpaceX. That works out to around 3,700 workers.
According to Bloomberg, which broke the news of the potential layoffs, the newly appointed CEO of Twitter is expected to demand that workers at the social network who were previously permitted to work remotely report to Twitter offices in and outside of San Francisco.
A meeting between Musk and his inner circle of advisors was scheduled to take place at Twitter to discuss the layoffs, according to internal messages obtained by CNBC. Entrepreneur David Sacks of Craft Ventures, The Boring Company President Steve Davis, Sam Teller, and Antonio Gracias from Valor Equity Partners were among those invited. Gracias has long been an investor in Musk’s other businesses, such as SpaceX and Tesla, and he served on the Tesla board of directors.
Unintentionally, Twitter employees had access to the meeting relating to the reduction in force’s calendar on the company’s internal systems.
After the deal finished last week, Musk promptly gathered a large number of dependable advisers and employees from his other firms to Twitter to give him advice on what to do next.
A similar return-to-office policy was implemented by Musk earlier this year at Tesla, his electric vehicle company and the source of the majority of his significant riches.
Those Tesla employees who did make it back to the office complained about the long trips and the lack of parking, tools, and workspace they required to do their jobs well.
Musk is rushing to increase margins after last week’s $44 billion purchase of Twitter, among other things by reducing personnel and operational costs and coming up with new revenue streams.
Twitter generated roughly $25 billion in total revenue between 2010 and 2021, spent about $7.8 billion on R&D, and had a net loss of about $1.3 billion over the same period.
He has suggested a number of things, including a $8 monthly subscription service that includes “blue check” user verification. The blue checks, a sign that the account holder is who they claim to be on Twitter, would not be accessible to any other users of the social media platform.