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Layoffs: Elon Musk Claims Twitter Loses $4m Per Day Due To Large Workforce

Layoffs: Elon Musk Claims Twitter Loses $4m Per Day Due To Large Workforce

Layoffs: Elon Musk Claims Twitter Loses $4m Per Day Due To Large Workforce

Layoffs: Elon Musk Claims Twitter Loses $4m Per Day Due To Large Workforce

Elon Musk, the CEO of Twitter, justified his decision to eliminate half of the company’s workers on Friday, claiming that his recently purchased company is rapidly incurring significant losses.

ALSO, READ Twitter Suffers Poor Sales Amid Takeover Battle With Elon Musk

Regarding Twitter’s reduction in force, Musk said on Friday evening, “Unfortunately, there is no choice when the firm is losing over $4M/day.”

Late last month, Musk completed the $44 billion acquisition of Twitter, and shortly after, he fired a number of the company’s top executives. Along with dissolving Twitter’s board of directors, the CEO of Tesla and SpaceX also named himself the company’s CEO.

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Twitter sent an email to its employees on Thursday preparing them for the personnel cuts, writing that its leadership planned to begin the “difficult process of reducing our global workforce on Friday.”

Layoffs: Elon Musk Claims Twitter Loses $4m Per Day Due To Large Workforce

“We recognize that this will impact a number of individuals who have made valuable contributions to Twitter, but this action is, unfortunately, necessary to ensure the company’s success moving forward,” read the email.

Musk said on Friday that Twitter is experiencing a “massive drop in revenue” following his takeover, which he attributed to organizations pressuring advertisers to cut ties with the company in anticipation of changes to the platform’s community guidelines.

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“Twitter has had a massive drop in revenue, due to activist groups pressuring advertisers, even though nothing has changed with content moderation and we did everything we could to appease the activists,” wrote Musk.

A coalition of civil society organizations addressed a letter on Tuesday to the top 20 advertisers on Twitter urging them to suspend their partnerships with the company if Musk, a self-avowed “free speech absolutist,” fails to enforce the current guidelines surrounding hate speech.

Layoffs: Elon Musk Claims Twitter Loses $4m Per Day Due To Large Workforce

Some employees have filed a class-action lawsuit against Twitter following the mass layoff announcement, arguing that Musk failed to provide enough notice for the cuts.

“We filed this lawsuit tonight in an attempt the make sure that employees are aware that they should not sign away their rights and that they have an avenue for pursuing their rights,” said attorney Shannon Liss-Riordan of the suit on Thursday.

However, Musk contends that his changes to Twitter’s workforce are necessary and were handled appropriately.

“Everyone exited was offered 3 months of severance, which is 50% more than legally required,” he wrote on Friday.


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