Elon Musk stated in a tweet that the reason for global mass Twitter layoffs was that the network lost up to $4 million daily and he had no choice.
Elon Musk’s Twitter began layoffs in India, last week, affecting all verticals, including engineers and the entire marketing and communications department. The layoffs are part of a global restructuring ordered by Twitter’s new owner.
Elon Musk had earlier stated that he had no choice but to let off thousands of Twitter staff because the network lost up to $4 million daily.
While the exact number of layoffs was not immediately clear, it was indicated that employees in the sales, engineering, and partnerships divisions were affected, in addition to the two departments that were dissolved. As per media reports, approximately 200 people have been laid off, which is more than 50% of Twitter’s India staff. To lessen the impact, Musk stated that all workers let off were given three months of severance pay, which he claims is 50% more than legally required.
“Regarding Twitter’s reduction in force, unfortunately there is no choice when the company is losing over $4M/day. Everyone exited was offered 3 months of severance, which is 50% more than legally required”, Elon Musk stated in a tweet.
Regarding Twitter’s reduction in force, unfortunately there is no choice when the company is losing over $4M/day.— Elon Musk (@elonmusk) November 4, 2022
Everyone exited was offered 3 months of severance, which is 50% more than legally required.
Furthermore, Elon Musk attributed a huge loss in revenue to the activist groups. He did not indicate how much Twitter’s revenue had decreased, nor did he name the activist groups in the issue. Musk stated on Twitter that his team had made no modifications to content control and had done everything they could to appease the groups.
Musk also said that it was “extremely messed up” and blamed the activist groups pressuring advertisers for trying to “destroy free speech in America.”
Twitter has had a massive drop in revenue, due to activist groups pressuring advertisers, even though nothing has changed with content moderation and we did everything we could to appease the activists.— Elon Musk (@elonmusk) November 4, 2022
Extremely messed up! They’re trying to destroy free speech in America.
After dissolving the entire board of directors, making himself the sole director of the microblogging platform, and laying off more than 50% of Twitter’s India staff, Elon Musk tweeted saying “power to people.”
⚡️⚡️⚡️ Power to the People ⚡️⚡️⚡️— Elon Musk (@elonmusk) November 5, 2022