Twitter to cut infrastructure costs by $1 billion after Musk’s order: Sources

Soon after acquiring the social media platform Twitter in a $44 billion dollar deal, billionaire and investor CEO Elon Musk has made a series of non anticipated amendments to Twitter, staying true to his style of working. Post the shocking news of firing off Twitter’s top liaison, here comes another breaking update where the new chief has ordered the concerned officials to find up to $1 billion in annual infrastructure cost savings. According to the report by Reuters, this news has been verified by an internal Slack and two sources familiar with the matter. There are also concerns that the social media platform could go down during the forthcoming high traffic events such as the US mid term elections.

Source: Twitter

According to the Slack message, the company is looking forward to extract between $1.5 million and $3 million per day in savings from cloud services and servers. This project will be known as “Deep Cuts Plan”.

As per an internal document, right now Twitter is facing a loss of approximately $3 million each day “with all spending and revenue considered.” Although, Twitter has not commented anything on this matter until now.

The precipitous cuts in infrastructure costs could lead to the increased risk of crashing of Twitter website and application at the time of crucial events, when users rush to check Twitter to find out recent developments, such as events of major political importance or any sort of crisis.

According to a source, Twitter is trying to explore the consequences of cutting extra server space which is meant to keep up with occasions of high traffic mentioned above. The person said, “(Musk) is willing to introduce that risk to meet these goals.”

Another source labelled these proposed changes to be “delusional” and also cautioned that when user traffic spikes up, the platform’s service can crash “in spectacular ways”.

As per one of the sources and the Slack message reviewed by Reuters, Twitter teams are working tirelessly to create a plan to achieve the cost savings’ target by the deadline of November 7, 2022. Certain employees have even been ordered to work in the office throughout out the week in order to keep up with the deadline.

The source also said that cost cuts could also be fulfilled from decreased expenditure on Google Cloud services. Google Cloud’s spokesperson refused to comment on the matter.