Elon Musk began laying off employees at Twitter, which he recently took over, on Friday. Around 4,000 jobs could be lost. people, ie almost half of the company’s employees. Some of those who were fired will file a class action lawsuit against the billionaire.
It is not known how many people have already been released. As of Friday, the California Department of Employment Development had not been notified of the layoff plans and the number of people who would lose their jobs, although it is a legal requirement for any company with more than 100 employees, the Associated Press reports.
Some layoffs have lost access to their work accounts
Reuters reports Musk plans to lay off nearly half of Twitter’s workforce, about 3,700. employees, and the company’s offices are temporarily closed.
Some of those who were laid off lost access to their Twitter accounts before being notified that they had lost their jobs, Politico reports.
To replace the unemployed workers, Musk has already hired “some Tesla engineers, other investors and colleagues,” the person who lost his job told the portal. He emphasized that Musk announced the job cuts, explaining that it was necessary to “cut costs”.
Politico, however, reports that other tech companies are already signaling their interest in hiring ex-Twitter employees. “If you work for Twitter and find yourself out of a job today, please get in touch. I’m sure we’ve found the perfect place for you,” Amazon representative Jun Gonzalez wrote on Twitter.
Three of Musk’s top executives had already resigned in late October when he took over. CEO Parag Agrawal, CFO Ned Segal and Vijaya Gadde, head of legal, trust and security policies, lost their jobs; in addition, Sean Edgett, the platform’s general counsel, was fired.
The AP reports that major companies like General Motors, General Mills and Audi have stopped posting their ads on Twitter, pending more information on how the company will operate after Musk’s buyout.
A significant drop in income
Volkswagen Group said on Friday that it had ordered the Skoda, Seat, Cupra, Audi, Lamborghini, Bentley, Porsche and Ducati brands to withdraw from any paid Twitter promotions for the time being. Advertisers fear that Twitter’s content policing won’t be as tough on hate speech, fake news and similar posts. Companies don’t want their brands to “lose reputation” by appearing on Twitter, explains the AP.
Meanwhile, Musk tweeted on Friday that the site had experienced a “drop in revenue” due to “activist” activity. He did not say who he meant or how much Twitter has suffered.
Even before Twitter was acquired, Musk repeatedly told investors and partners that he wanted to heal the company financially, cutting nearly 75 percent of its workforce.
In April, the billionaire made a bid to buy Twitter for $44 billion. In May, however, he withdrew from the offer, saying that Twitter did not want to give him information about how many user accounts are fake. At the beginning of October, the billionaire changed his mind once again and said that he is ready to buy Twitter for 44 billion dollars that was previously accepted by the service.