New Chief Executive Officer of Twitter, Elon Musk, took to Twitter on Saturday to justify the company’s decision to lay off nearly half of the entire workforce of the social networking company. According to Elon Musk, the social media company had no other choice when it was losing millions of dollars daily. He added that the company was losing nearly 4 million dollars daily.
Since the takeover of the company by Tesla CEO Elon Musk there have been rumors in the social media industry that the new chief would implement a complete overhaul of the systems followed by the social media company. Musk who is highly concerned about the current economic situation in the United States was surely going to lay off workers in order to cut back on expenses in the company.
Soon after Musk closed his purchase deal of the company, various news portals reported that he would lay off nearly 75 percent of the workforce. The news was later refuted by Musk himself when he visited the Twitter headquarters as CEO for the first time.
A few days ago, news agencies published another report suggesting Musk would lay off half of the 7500 employees starting from 4th November 2022.
Various employees received information on Friday itself that they have lost their jobs. In a letter sent by the company to its employees, it said that the workers would be able to find out by 9 am Pacific Standard Time if they are part of the workforce which are being laid off. Several media outlets got access to the above-said letter.
There have been no statements or communication from Twitter regarding how much employees would be impacted by the latest measure of cost-cutting. Some employees took to Twitter on Friday to inform everyone that they have lost access to their work accounts.
Media outlets also report that the company has laid off a majority of the 200 employees in India. The layoff has impacted nearly all departments of the Indian arm of Twitter, including engineering, sales and marketing, and communications teams. Some sources suggest that the entire marketing and communication team in India has been sacked as part of cost-cutting.
During the second quarter of the current financial year, Twitter posted a net loss of 270 million dollars. The company had posted a profit of 66 million dollars during the same period in the previous financial year.
Elon Musk is blaming activist groups in the USA for the fall in advertising revenue as these groups have been allegedly trying to put pressure on brands and businesses to stop advertising on social networking Platforms. Various multinational conglomerates such as Volkswagen, United Airlines, GM, and General Mills Inc have decided to pause advertising on Twitter.
