Elon Musk hints that layoffs are in Twitter’s future - The Verge
Elon Musk told Twitter employees on Thursday that the company needed to significantly lower its costs to become financially "healthy," suggesting the possibility of future layoffs.
Elon Musk told Twitter employees on Thursday that the company “needs to get healthy” financially and bring down costs, suggesting that job cuts are likely in store if his deal to buy the social media service goes through.
“Right now costs exceed revenue,” Musk said when asked about the possibility of layoffs during an internal Q&A, according to employees who heard the remarks. “That’s not a great situation.”
The question of layoffs has been top of mind for Twitter’s more than 7,000 employees since Musk first said he wanted to buy the company. Current CEO Parag Agrawal told staffers in an earlier meeting that layoffs weren’t being planned “at this time.” Though Musk didn’t explicitly say if there would be job cuts Thursday, his comments suggest the odds are high.
Musk previously indicated that Twitter would cut roles in a pitch deck shared with potential investors, according to The New York Times. The deck reportedly showed that Musk wanted to increase Twitter’s headcount in the short term, then cut around 900 jobs before resuming growth.