In the upcoming weeks, Twitter plans to fire 50 employees from its product section, according to a report on the news website Insider. Two company employees who were aware of the development were cited in the study. Elon Musk, the company’s new boss, had informed employees around six weeks prior that there would be no further workforce reductions. According to the estimate, the social media platform’s employee count would drop to under 2,000 if it continues to lay off workers.
Twitter appears to be in financial trouble ever since Musk purchased the firm
The company has not yet responded to the report. Twitter appears to be in financial trouble ever since Musk purchased the firm in October for $44 billion. Musk previously stated that the company was experiencing “a significant decline in revenue” due to the loss of sponsors.
As a cost-cutting effort soon after taking over, Musk let go nearly 50% of the workers. He also put into effect a number of organizational and product adjustments. One of the greatest and most contentious changes to the business was the introduction of the Twitter-verified Blue checkmark as a paid service.
A New York Times article claims that Twitter has stopped making payments for services and rent totaling millions of dollars. Due to nonpayment of rent, the social networking juggernaut was forced to vacate its Seattle location. As a result of reduced janitorial and security services, some employees started carrying their own toilet paper to work.
The company’s revenue for the fourth quarter dropped by around 35% to $1.025 billion
For failing to pay the rent on a San Francisco residence, Musk was recently also sued. A similar request was made to employees at Twitter’s Asia-Pacific headquarters in Singapore, who were instructed to clear their desks and work remotely.
Elon Musk recently said that he had spent the previous five weeks “reducing expenses like crazy.” Musk claimed that in order to prevent Twitter from going broke by $3 billion, he fired employees and reduced spending. The section responsible for content moderation had also experienced staff reductions, raising concerns about a possible rise in hate speech on the site. According to the online journal the Information on Wednesday, a top ad executive told during a staff meeting that Twitter’s revenue for the fourth quarter dropped by around 35% to $1.025 billion.
