social media platform Twitter Inc TWTR could have a new owner with a pending $44 billion acquisition Tesla Inc TSLA chairman Elon Musk is complete and the deal could result in massive job cuts for the company.
What happened: Twitter could shed 75% of its workforce if Musk’s acquisition is completed, according to a Washington Post report Thursday. The cuts would increase Twitter’s headcount from 7,000 to about 2,000.
The job cuts could take place immediately after the acquisition closes. The deadline for Musk’s $44 billion acquisition is October 28.
Twitter sent a note to employees to assure them that no mass layoffs are planned. The Post’s report states that Twitter could still cut 25% of its workforce if the deal with Musk doesn’t go through.
Twitter said talks about cost savings and possible job cuts were ongoing as a result of the acquisition. Staff were told there would be “tons of rumor and speculation” about the job cuts as the deal nears completion.
“Those discussions ceased when the merger agreement was signed,” Twitter’s General Counsel said Sean Edget said.
Related link: Do fired Tesla employees love or hate Elon Musk?
Where Twitter could see layoffs: After announcing the acquisition of Twitter earlier this year, Musk held a town meeting with Twitter staff who could ask questions. One of the most popular topics was the discussion about job cuts.
Read more about the possibility of Musk Sells More Tesla Stock to Fund Twitter Deal.
Photo via Shutterstock.
“When someone does useful things, that’s great. If they’re not, then I’m like, ‘Why are they in the company?'” Musk said of Twitter employees.
Musk was a opponents of teleworkers, something that made headlines earlier this year when he told Tesla employees to return to the office or look for a new job.
Musk told Twitter workers that if they’re exceptional at their job, they should be allowed to work remotely. The Tesla CEO gave some leeway…
