Billionaire Elon Musk decided to buy Twitter earlier this year, hoping to bring about change according to his preferences. This also includes cutting back on manpower management bringing the company’s layoff season. Twitter already has a smaller number of employees compared to other companies; layoffs mean more economic downturns.
However, the Washington Post has come across the latest news about Elon Musk in which he decided to cut 75% of the workforce from a Twitter company. Earlier this year, in April, Musk, a 9% stakeholder in the company, decided to buy Twitter for $44 billion, no less. He often changed his mind about canceling the deal because of the fake spam bot, but finally agreed to buy the company according to his demands.
Although there is no middle ground between Twitter and Elon Musk. Speculation of alleged allegations of a fake spam bot led Twitter to sue Elon Musk. Since then, both sides have been battling to win over Twitter, while Judge Delaware adjourned the hearing until October 28 to resolve their differences. Until then, they can either resolve this dispute between the two companies or continue with their court cases.
Additionally, Twitter appears to have fewer employees than other businesses. According to Companies Marketplace, Twitter currently employs 7,500 people. If they decide to lay off 75% of them, they will only have 2,000 employees, putting them on par with Groupon. Snap, on the other hand, employs 6,449 people, while Spotify employs 9,000. At the moment, Twitter is in between these two Inc.
Tesla CEO Alex Spiro’s attorney is concerned that he has not made any comment regarding this news. While Wedbush analyst Dan Ives said the layoffs will bring more profit and commitment to the company. Investors will willingly make a deal to invest and make a profit. But moreover, the reduction of employees will also bring economic decline.
In addition, the Washington Post reports that the company would still enter layoff season if Elon backed out of the deal. Another indicator that the business itself is experiencing a difficult financial situation is the fact that the company will terminate other employees in the future.
In particular, a large number of people work for other technology companies without having to worry about appearances. Uber, Pay Pal, Baidu, Salesforce and trip.com are just a few examples. Zuckerberg oversees 83,000 Facebook employees.
Other companies listed by Companies Market Cap is Amazon, with 1.5 million employees. While Apple contractor Foxconn has 826,600 workers, Chinese e-commerce giant JD has 390,000 workers, Alibaba owns 245,700 workers and IBM owns 282,100 workers.
The only difference between these tech companies is that they need employees to move physical goods as opposed to social networking apps. For social networking applications, the requirements are different from those for e-commerce companies. Therefore, this naturally makes the workforce smaller by default.
H / T: Statesman.
Read more: Report reveals Alibaba has the highest gross merchandise value of all C2C websites
