Elon Musk, the new owner of Twitter, has defended the firm’s continued mass layoffs by claiming that the company has been losing $4 million daily as a result of its enormous workforce. He claimed that as a result, the business was forced to fire certain employees.
Regarding Twitter’s reduction in force, unfortunately there is no choice when the company is losing over $4M/day.
Everyone exited was offered 3 months of severance, which is 50% more than legally required.
— Elon Musk (@elonmusk) November 4, 2022
He did not, however, go into detail about how the company’s vast employees contributed to the loss.
Good severance packages: According to Musk, all those affected by the layoffs received three months’ worth of pay, which is 50% more than what was legally required. He stated:
“Regarding Twitter’s reduction in force, unfortunately, there is no choice when the company is losing over $4M/day. Everyone exited was offered 3 months of severance, which is 50% more than legally required.”
The enormous layoffs: 3,700 employees, or about half of Twitter’s personnel, are being let go as part of an exercise, and many of them received email termination notices on Friday. Just one week has passed since Elon Musk assumed control of the corporation before the change.
Other actions by Musk Musk has revealed that users will soon start paying $8 per month to get/retain their verification badges in addition to significantly cutting Twitter’s workforce.
Although some people have expressed disapproval of the announcement, Musk has stated that the plan cannot be changed. This morning, he tweeted, “Trash me all day; it’ll cost $8.”
Declining ad revenue: In response to Musk’s criticism over Twitter’s ad revenue, other companies have announced plans to halt paid advertisements on the social media network.
The most recent corporation to do this is Volkswagen, which announced on Friday that in the wake of Elon Musk’s takeover of the social media site, it has advised its brands to halt paid advertising on Twitter until further notice.
“We are closely monitoring the situation and will decide about the next steps depending on its evolvement,” Europe’s top carmaker said in a statement.
The Volkswagen Group, which owns the brands VW, Seat, Cupra, Audi, Lamborghini, Bentley, Ducati, and Porsche, made the same decision as General Motors and General Mills Inc.
Musk bemoaned a decline in Twitter’s ad revenue on Friday. He stated:
“Twitter has had a massive drop in revenue, due to activist groups pressuring advertisers, even though nothing has changed with content moderation and we did everything we could to appease the activists. Extremely messed up! They’re trying to destroy free speech in America.”
