Elon Musk to cut 75 per cent of Twitter workforce if US$44 billion deal goes through, Washington Post says
- The billionaire entrepreneur told prospective investors that he would make the cuts to Twitter’s 7,500 workers, far more than the social media company planned
- The cuts could set the company back years, according to one analyst, and it may hurt the platform’s ability to fight spam, which Musk said he would address
Musk has told prospective investors in his Twitter purchase that he plans to cut nearly 75 per cent of Twitter’s employee base of 7,500 workers, leaving the company with a skeleton crew, according to the report. The newspaper cited documents and unnamed sources familiar with the deliberations.
San Francisco-based Twitter and a representative for Musk attorney Alex Spiro did not immediately respond to messages seeking comment.
While job cuts have been expected regardless of the sale, the magnitude of Musk’s planned cuts are far more extreme than anything Twitter had planned. Musk himself has alluded to the need to cull some of the company’s staff in the past, but he hadn’t given a specific number – at least not publicly.
“A 75 per cent headcount cut would indicate, at least out of the gates, stronger free cash flow and profitability, which would be attractive to investors looking to get in on the deal,” said Wedbush analyst Dan Ives. “That said, you can’t cut your way to growth.”