Report: Elon Musk plans to cut 75% of Twitter workforce

Report: Elon Musk plans to cut 75% of Twitter workforce

SAN FRANCISCO (AP) — Elon Musk plans to lay off most of Twitter’s staff once he owns the social media company and after, according to a report Thursday by The Washington Post.

Musk has told potential investors in his Twitter acquisition that he plans to cut nearly 75 percent of Twitter’s 7,500-employee workforce, leaving the company with a skeleton team, according to the report. The newspaper cited documents and unnamed sources familiar with the discussions.

San Francisco-based Twitter and a representative for Musk’s attorney, Alex Spiro, did not immediately respond to messages seeking comment.

While job cuts are expected regardless of the sale, the scale of Musk’s planned cuts is far more extreme than what Twitter had anticipated. Musk himself has mentioned the need to kill some of the company’s employees in the past, but he didn’t give an exact number—at least not publicly.

“A 75% layoff would indicate, at least out of the gate, free cash flow and higher profitability, which would be attractive to investors looking to get into the deal,” Wedbush analyst Dan Ives said. “That being said, you can’t cut your way to growth.”

Ives added that such drastic cuts to Twitter’s workforce would likely set the company back years.

Already, experts, nonprofits, and even Twitter employees have warned that pulling back on investments in content moderation and data security could hurt Twitter and its users. With as drastic a cutback as Musk may plan, the platform could be flooded with harmful content and spam; the latter Tesla’s CEO has said he will direct if he owns the company.

After an initial $44 billion bid to buy Twitter in April, Musk backed out of the deal, claiming Twitter had misrepresented the number of fake “spam bot” accounts on its platform. Twitter sued, and a Delaware judge has given both sides until October 28 to work out the details. Otherwise, the trial will take place in November.

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