Good guy Elon Musk threatens to lay off Twitter employees following acquisition

"Right now costs exceed revenue," says Musk

Elon Musk had some not very reassuring words for Twitter employees during a recent internal Q&A regarding his acquisition of the company.

During the presentation, Musk said that the company “needs to get healthy” financially as “right now costs exceed revenue,” according to employees. Per The New York Times, in a pitch deck given to potential investors, employee cuts were also hinted at.

However, Twitter CEO Parag Agrawal told employees that job cuts were not in their plans “at this time,” suggesting that layoffs are not confirmed yet.

That said, it appears that if Musk’s deal to buy the social media service does go through, at least some employees will be cut from the social media company.

The deal could result in Twitter slashing its workforce of over 7,000 employees. The same investor pitch deck says that Musk wants to increase Twitter’s employee count, before cutting 900 jobs and resuming growth.

Twitter’s annual revenue increased to $5.08 billion USD (about $6.5 billion CAD) in 2021, a shift from 2020’s annual revenue of $3.72 billion USD (about $4.8 billion CAD). As for losses, the social media company experienced a loss of $221 million USD (roughly $286 million) in 2021 which is better than its 2020 loss of $1.14 billion (approximately $1.4 billion CAD).

Source: The New York Times Via: The Verge