Twitter Begins Mass Layoffs — Elon Musk Says ‘No Choice’ Citing $4M Loss per Day – Featured Bitcoin News

Tesla CEO, and Twitter Chief Elon Musk, has started massive layoffs at his social media company. He explained that Twitter lost over $4million per day and there was no way to avoid it. “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,” he explained.

Mass Layoffs in Twitter

Twitter’s new boss, Elon Musk, has laid off about 50% of employees at the social media company. All Twitter employees were notified by the billionaire via email Thursday night that their employment had been terminated.

“In an effort to place Twitter on a healthy path, we will go through the difficult process of reducing our global workforce on Friday,” the letter states. “This action is unfortunately necessary to ensure the company’s success moving forward.”

The letter adds that by 9 a.m. PST on Friday, Nov. 4, “everyone will receive an individual email with the subject line: Your Role at Twitter … If your employment is not impacted, you will receive a notification via your Twitter email. If your employment is impacted, you will receive a notification with next steps via your personal email.” The letter continues:

We will temporarily close our offices to protect employees and customers. All badge access will be suspended. You must return home to any office you may be in or going to.

Musk tweeted Friday explaining that Twitter’s loss of over $4million per day meant the reduction in workforce was natural. Musk stressed that all employees who were let go received three months’ severance. This is half the legal requirement.

Twitter Begins Mass Layoffs  — Elon Musk Says 'No Choice' Citing $4M Loss per Day

Yoel Roth, Twitter’s head of safety and integrity, revealed Friday that Musk cut 50% of Twitter’s workforce company-wide. “Yesterday’s reduction in force affected approximately 15% of our Trust & Safety organization (as opposed to approximately 50% cuts company-wide), with our front-line moderation staff experiencing the least impact,” he tweeted. According to Twitter’s annual report, the company had over 7,500 full-time employees as of Dec. 31, 2021.

Twitter workers filed a federal suit Thursday against the company accusing it of violating a federal law known as the Work Adjustment and Retraining Notification Act (WARN Act) Act, which governs termination notices.

A massive drop in revenue

Musk also revealed in a tweet Friday that “Twitter has had a massive drop in revenue.” Before his takeover, the social media company reported making 90% of its revenue from advertisers. Major companies stopped advertising on Twitter allegedly because of concerns over Musk’s influence on content moderation policies.

The billionaire claimed “activist groups pressuring advertisers” led to the revenue plunge, “even though nothing has changed with content moderation and we did everything we could to appease the activists,” he tweeted Friday. “They’re trying to destroy free speech in America.”

Twitter Begins Mass Layoffs  — Elon Musk Says 'No Choice' Citing $4M Loss per Day

Musk decided to make it $8 per month to get a blue checkmark next to their names in an attempt to increase revenue on Twitter.

What do you think about Elon Musk firing 50% of Twitter’s workforce? Leave your thoughts in the comment section below.

Kevin Helms

Kevin is a graduate of Austrian Economics. He discovered Bitcoin in 2011, and has been an advocate ever since. His main interests are in Bitcoin security, open source systems, network effects, cryptography, and intersections between economics, cryptography, and Cryptography.

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