Financial Associated Press, November 3 (Editor Zhou Ziyi)Tesla (NASDAQ: ) CEO Elon Musk plans to cut about 3,700 jobs after taking over Twitter (NYSE: ), about 3,700 jobs at the social media company, the media reported Thursday, citing people familiar with the matter. half of the total.
Last week, Musk completed the $44 billion acquisition of Twitter and officially became the actual controller of Twitter. It is reported that the purpose of the layoffs is to reduce costs after its $44 billion acquisition.
Musk plans to meet with people in Twitter’s inner circle to discuss layoffs, according to internal communications cited by the media.
The Financial Associated Press previously reported that several Twitter executives were fired by Musk. Chief executive Parag Agrawal, head of legal Vijaya Gadde, chief financial officer Ned Segal and general counsel Sean Edgett have all been notified of their dismissal for “good cause”.
Meanwhile, after the deal closed last week, Musk quickly brought many of his trusted advisors and employees to Twitter to advise him on his next steps.
Musk had said before the acquisition that it would cut 75% of its workforce. When he closed the acquisition last Wednesday, he pledged himself not to lay off so many jobs when he took over. But for now, Musk’s layoff plan has not given up.
Musk also intends to change Twitter’s existing telecommuting policy, requiring remaining employees to report to the office, except in special circumstances, the people familiar with the matter said.
Improve company profit margins
After acquiring Twitter last week, Musk is working to improve the company’s profit margins, including cutting headcount and operating expenses, and finding new ways to generate revenue.
According to statistics, between 2010 and 2021, Twitter’s total revenue is about 25 billion US dollars, R&D expenditure is about 7.8 billion US dollars, and the cumulative net income is about 1.3 billion US dollars.
To that end, Musk is also rolling out a subscription product that charges $8 a month to users who have a blue authentication badge (“Blue V”) on the platform and authenticate them, otherwise those users will lose their “” Certified” badge.
Before Musk bought Twitter, users could subscribe to the Twitter Blue service for $4.99 a month to get some exclusive features, including an “edit” button.