According to Bloomberg News, Elon Musk plans to sack 3,700 workers at Twitter, or almost half of the company’s workforce.
The effort to reduce costs was launched roughly a week after the Tesla CEO assumed leadership of the social media firm after completing his $44 billion acquisition of Twitter. Musk quickly let go of Twitter CEO Parag Agrawal, the company’s senior lawyer and chief financial officer, and other executives have already resigned.
A request for comment regarding the alleged job layoffs received no immediate response from Twitter.
Wedbush analyst Dan Ives told CBS MoneyWatch that he thought Musk overpaid for Twitter by roughly $20 billion and predicted that this would cause the businessman to lay off between 30% and 50% of the workforce. Twitter’s most recent quarter had a $270 million loss and a decline in revenue due to sluggish advertising growth.
“By overpaying for Twitter by roughly $20 billion, there is a lot of wood to chop for Musk to try to make back his money for himself as well as his investors,” Ives said.
According to Bloomberg, Twitter will inform its staff of the job losses on Friday. Additionally, the news source reported that Musk intended to change the company’s present policy, which permits workers to work from any location of their choice, stressing that the majority of staff members will be required to report to offices.