According to Twitter, it will let its employees know on Friday if they will be let go once Elon Musk acquires the company.
The social media giant said in an internal memo that the layoffs are “an effort to set Twitter on a healthy path.”
The company said that until employees learn if they would lose their employment, their offices will be temporarily shuttered and locked.
The multi-billionaire, who acquired Twitter last week for $44 billion (£39.3 billion), will serve as its CEO.
Twitter stated in the email that “We will begin the challenging process of decreasing our worldwide staff on Friday.”
It went on to say, “We understand this will have an impact on a lot of people who have contributed greatly to Twitter, but this step is regrettably required to guarantee the company’s success going forward.”
In order to “help secure the safety of each employee as well as Twitter systems and customer data,” the business stated workplace access will be immediately restricted.
By 9:00 Pacific time (16:00 GMT) on Friday, all employees are expected to get an email with the subject “Your Role at Twitter.”
According to Twitter, employees who are unaffected will be informed through business email.
The “next actions” will be announced to people who are impacted through their personal accounts in the interim.
As a result of Twitter’s dispersed workforce and its intention to notify impacted parties as soon as possible, all contacts regarding this procedure will be sent via email, the social media platform stated.
Exodus of talents.
There are rumors that up to half of Twitter’s 8,000 workers might be eliminated.
The website has trouble turning a profit. Making a dent in the salary cost is one method to solve the issue.
Because he was locked out of his work laptop and the Slack chat app, Simon Balmain, a senior community manager for Twitter in the UK, told the BBC that he thought he had been fired.
Everyone received an email informing them that there would be a significant decrease in staff, and about an hour later, he claimed, people began having their computers remotely erased and their access to Slack and Gmail canceled.
“People in the UK are likely asleep and unaware at this time. Because of the tasks I was working on, I worked primarily during LA (Los Angeles) hours, so I was awake when it occurred.”
Another employee of Twitter stated that he was impatiently awaiting a communication from his employer confirming his continued employment.
He predicted that he would stay up late to await the message.
“The talent migration caused by this layoff will change the whole IT sector as we know it. We’re all watching out for one another, and it’s amazing to see how far love and support have spread “added Mr. Balmain.
According to Bloomberg, who cited unidentified sources, certain senior staff members were requested to compile names of team members who would be let go.
Binance, a cryptocurrency exchange, made a Twitter investment as part of Elon Musk’s acquisition. Its top executive, Changpeng Zhao, has previously stated that “a leaner staff would make more sense.”
Speaking at the Web Summit in Lisbon, Mr. Zhao also criticized the platform for being too understaffed to push out new services quickly enough.
Pay to get verified
The cost-cutting comes in response to complaints over Twitter’s efforts to earn money by considering charging $8 (£7) per month for a blue check-mark that says, “Verified.”
In addition to receiving the verification badge, users who pay may see fewer advertisements and increased promotion for their tweets.
“We need to pay the bills somehow,” Mr. Musk tweeted in reference to his strategy.
Since several years ago, Twitter has not turned a profit, and its monthly user base of around 300 million people has remained mostly stable.
Given the current state of the economy and the low prices of many tech stocks, many analysts believe that Mr. Musk, the richest man in the world, overpaid for the business.
However, in a BBC interview, Brandon Borrman, the former head of worldwide communications at Twitter, questioned how the company could justifiably charge users in order to maintain a “level playing field” with other users.
How the budget reduction would impact the platform’s functioning is unclear. When it comes to his employees, Mr. Musk has a reputation for being brutal.
According to US media sources, some employees have already put in lengthy hours to satisfy Mr. Musk’s expectations following the takeover.
Mr. Musk claimed in May that his demands for a strong work ethic would be “severe,” but lower than what he set for himself.
Board axed
In accordance with the acquisition deal, nine of Twitter’s board members left the organization, leaving self-described “Chief Twit” Mr. Musk as the only remaining director.
The action was perceived as solidifying Mr. Musk’s grip over the business.
Bret Taylor, chairman, and Parag Agrawal, chief executive, were among those departing.
Ned Segal, the chief financial officer, and other top executives have also blogged about leaving or are said to have departed.
US media claimed that some of Mr. Musk’s pals joined Twitter as senior individuals departed.