Billionaire Elon Musk plans to shrink Twitter’s staff by nearly 75% after his long-delayed deal to take over the social media company closes, according to the Washington Post, in a massive downsizing that could impact user experience.
Musk reportedly informed prospective investors he plans to cut Twitter’s workforce from 7,500 to around 2,000.
Twitter already planned to cut around a quarter of its workforce in the now-unlikely event Musk’s $44 billion takeover falls through, as the company aims to slash payroll by $800 million by the end of 2023, according to the Post, citing corporate documents and people familiar with internal discussions.
The company’s planned cuts reportedly include critical infrastructure like data centers, which could make it more difficult to police information and defend against security risks for Twitter’s more than 200 million estimated daily active users.
Musk and Twitter did not immediately respond to requests for comment from Forbes.
On Thursday evening, Twitter’s top lawyer Sean Edgett sent out a note to all employees saying the company did not have any confirmation from Musk about his plans. Twitter’s own, smaller-scale “cost savings discussions” were put on hold once the merger agreement was signed, Edgett said, according to an email viewed by The Post.
Twitter and Musk are expected to close the purchase by October 28. When the deal closes, Musk would immediately become Twitter’s new owner.
Writing by Omotola Oguneye