Twitter is a poorly run company, and there are ramifications to that for employees. One is job security, and if reports about Elon Musk’s plans are true, then many workers at the social media company have none.
Musk reportedly told investors he planned to eliminate 75% of the workforce. The math on this one is pretty easy; with almost 10,000 employees, 7,500 could be looking for work in the coming months.
Here’s the rub – many of those people would lose their jobs regardless if Musk bought the company. Current management, led by a CEO who’s as unqualified for the task as a go-kart in the Indy 500, had already made plans to trim payroll by $800 million by the end of 2023.
Stories say that the HR department at Twitter has told employees that there were no plans for mass layoffs, but the Washington Post produced documents that showed major plans to trim fat in payroll and infrastructure.
Bloomberg reported that Twitter general counsel Sean Edgett sent an internal memo to employees after the Post story saying the company has not had plans to lay off employees since the deal with Musk in April.
Twitter was one of the companies that told their full-time employees they would never have to come back to the office after the pandemic. Imagine the lost productivity and incredible wasted costs of office space.
Wednesday, Tesla had their quarterly earnings call, and Musk told Wall Street he was paying too much for Twitter. He has agreed to move forward with his original offer of $54.20 per share, roughly a $44 billion sale price.
Here’s a quote from Musk on the Tesla call.
“Although obviously, myself and the other investors are obviously overpaying for Twitter right now, the long-term potential for Twitter, in my view, is an order of magnitude greater than its current value.”
Twitter is a poorly run company, but if the Musk sale goes through, a lot of the upper management will be floating back to earth on diamond-crusted golden parachutes.
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