Twitter layoffs start: Offices shut, employees to know via email
After announcing plans to launch an $8 blue tick subscription, Twitter has initiated its next big task, which is headcount reduction, barely a week after Elon Musk, Tesla and SpaceX chief, acquired the platform. The company, in an internal mail to its employees, said the "difficult" process will start on Friday and that the proposed layoffs are necessary to set the company on a "healthy path". The email says those affected by the layoffs will get to know via an email at 9 a.m. PT Friday.
“We recognize that this will impact a number of individuals who have made valuable contributions to Twitter, but this action is, unfortunately, necessary to ensure the company’s success moving forward,” said the internal email, as reported by western media.
To avoid chaos or any kind of disturbance in its daily affairs, Twitter has said it'll keep its offices closed on Friday and all badge access will be suspended during that time. The move will ensure "the safety of each employee as well as Twitter systems and customer data", said the company, adding that those in the office or coming to the office must return to their homes.
Those who'll face the axe will be informed via their personal emails, while those unaffected by them will receive notification on their official emails.
The exact number of layoffs is not known yet, though earlier reports said these could be anywhere between 40-50% of the total strength of Twitter, which as per a regulatory filing was around 7,500. Some estimates say those affected by layoffs could be anywhere between 2,000-4,000.
Musk's entry into Twitter has already led to many top-level exits at the company, including CEO Parag Agrawal, CFO Ned Segal, and legal affairs and policy chief Vijaya Gadde. Sarah Personette, the former chief customer officer, and Dalana Brand, Twitter’s chief people and diversity officer, also resigned last week. Twitter chief marketing officer Leslie Berland, head of product Jay Sullivan and global sales V-P Jean-Philippe Maheu have also left the company.
If the expected layoffs rise up to 50%, it'll take the current employee strength at Twitter to less than 4,000. The data shows Twitter's employee headcount was between 3,000-4,000 for years until, in 2019, the company decided to recruit more people after investing heavily in product, engineering & design.
For Musk, monetising the platform to grow revenue streams is the top priority. So far, the platform is heavily dependent on advertisers for revenue. Recently, he tweeted: “(W)e need to pay the bills somehow! Twitter cannot rely entirely on advertisers.” The rather expensive Twitter deal -- the billionaire has admitted to “obviously overpaying” for Twitter in the $44-billion deal -- has prompted the SpaceX chief to act swiftly since taking over the company last Friday.
Plus, Twitter is long been a loss-making company despite its huge potential. Data shows the company has made losses in eight out of 10 past fiscal years. With Musk at the helm of affairs, he wants to overhaul the company at a fast pace. This week, a team of Tesla engineers was roped in to oversee what's changes are required to reshape the company. Also, Musk has said Twitter will charge $8 per month to users who want a blue tick by their name, which indicates that it's a verified account. He also plans to introduce the long-sought 'Edit' button on Twitter for all users.