The American billionaire, co-owner of Tesla and SpaceX companies Elon Musk is going to fire 75% of Twitter employees in the event of its acquisition. On Thursday, October 20, the newspaper reported The Washingron Post with reference to documents.
Musk, according to the publication, will soon acquire a social network, after which he will fire 75% of the company’s staff, namely 7.5 thousand employees. That said, even if the entrepreneur’s deal with Twitter falls through, cuts are still expected at the company, as the current management planned to reduce the payroll by about $800 million, after which layoffs of almost a quarter of disgruntled employees would follow.
The newspaper noted that the company plans to cut infrastructure costs, including digital security. According to the authors of the material, this may be followed by hacking of user accounts and the distribution of offensive materials.
“The easy part for Musk is to buy Twitter, and the hard part is to fix the mistakes,” Dan Ives, a financial analyst at Wedbush Securities, was quoted as saying.
Earlier, on October 14, Reuters reported that Elon Musk is under investigation by the US federal authorities in connection with his deal to acquire Twitter. The company wants the investigation documents because they touch on key issues in the lawsuit.
Twitter accepted Elon Musk’s offer to buy the company for $44 billion on October 5. The deal was expected to close within a few weeks. Musk had suggested to Twitter the day before that they renew their acquisition of the company at a price of $54.2 per share. Bloomberg reported that against this backdrop, Twitter shares jumped 18%. Twitter shareholders have approved a deal to sell the company to an entrepreneur.
Elon Musk at the end of April announced the purchase of a social network, but on May 13 he said that the deal to acquire Twitter was suspended. The entrepreneur claimed that he was given false data about the number of fake accounts. He was going to evaluate the data according to his own methodology.
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