According to Bloomberg News, Elon Musk is set to cut about 3,700 jobs at Twitter, which represents half of the company’s workforce.
The pressure to cut costs comes nearly a week after Tesla’s CEOof the social media company after the completion of its $44 billion purchase of Twitter. Musk immediately fired Twitter CEO Parag Agarwal, the company’s chief financial officer and top lawyer, while other members of the company’s leadership team have also left.
Twitter did not immediately respond to a request for comment about reports of job cuts.
Musk paid about $20 billion for Twitter, according to Wedbush analyst Dan Ives, who told CBS MoneyWatch that he believes it will allow the billionaire to cut between 30% and 50% of the company’s workforce. will force. In its most recent quarter, Twitter lost $270 million and its revenue slipped as ad growth slowed.
“By paying more than nearly $20 billion for Twitter, there’s a lot of wood to cut for Musk to try to get his money back for himself and his investors,” Ives said.
Bloomberg reported that Twitter will announce employee job cuts on Friday. The news service also said that Musk plans to reverse the company’s current policy of allowing him to work from a location of his choice, noting that most employees will be asked to report in offices. .