According to the latest media reports, the Chief Executive Officer of Twitter, Elon Musk is planning to lay off nearly half of the social media cany’s staff. Elon Musk who took over control of Twitter on October 27, 2022, has since taken various “revolutionary” steps in the social networking company.
A report by Bloomberg News states that the company is planning to fire 3700 employees as part of the cost-cutting measures which has been in force due to dwindling revenue and earnings. Elon Musk who has earlier said that ‘he does not feel good about the economy is expected to continue following an aggressive policy on securing the financial condition of Twitter.
A few days ago, there were news reports that the CEO will lay off 75 percent of the workforce in social media company within a few days. The news was later refuted by Elon Musk himself when he visited the headquarters of Twitter for the first time after taking over as owner of the company.
There has been no confirmation or any statement from the social media company regarding the truth behind the Bloomberg News report.
A person who knows the latest moves on Twitter told the news agency that there might be changes in the number of people who would be laid off from the company. The top management also has not yet reached a decision regarding the severance package each employee will get for being laid off from the company without prior notice. California law requires large employers to give 60 days’ notice for such a massive headcount reduction, so it’s not clear if Musk is trying to sidestep the spirit of the law by calling it 60 days of “severance.”
Similar to other tech and social media companies, Twitter Inc was also deeply impacted by the high inflation rates and slowing down of the global economy. Despite showing a small increase in the number of users, the social networking company was facing a crisis of increasing expenses and lower revenue generation.
The continuing crisis in the advertisement sector also had severe impacts on ad revenue of Twitter.
New CEO Elon Musk also has plans to open a new revenue stream for the company in the form of charging a “verified” feature of 8 dollars every month. The Blue Checkmark which was introduced in order to avoid celebrities and influential people from being used or impersonated will not be a subscription-based feature that can be accessed by anyone.
More details on the workings of the new feature are still not available in the public domain. There are rumors in the tech world that the “paid” blue checkmarks feature will be rolled out from Monday onwards.
