Elon Musk and Mass Layoff at twitter
- Posted on November 4, 2022
- By Akta Yadav
- 88 Views
Twitter's mass layoffs under Elon Musk have started, and the company has warned employees to expect email termination notices as it temporarily closes all of its offices. In order "to help ensure the safety of each employee as well as Twitter systems and customer data," Twitter announced that its offices will be temporarily closed and that all staff badge access will be suspended.
All employees will receive an email alert by 9am Pacific time on Friday informing them of their employment status at the company, the company announced in a memo on Thursday evening.
Please go home if you are in an office or en route to one, the memo instructed. The email stated, "We will begin the challenging process of reducing our global workforce on Friday in an effort to put Twitter on a healthy path.
At the end of 2021, Twitter had a global workforce of about 7,500 people, and Musk reportedly intends to fire up to half of them. The memo stated that employees who have been let go will receive information about the next steps in an email sent to their home addresses with the subject line "Your Role at Twitter."
Employees who are not affected by the layoffs will receive notification via their work email addresses on Friday morning, according to Twitter.
The memo pleaded with the staff to check their emails as well as their spam folders. After demanding significant cost reductions and imposing an aggressive new work ethic across the social media company, Musk conducted a week of high-level purges that culminated with the notification of layoffs.
He bemoaned that "there seem to be 10 people managing' for every one person coding' last week in a tweet. The long-anticipated layoffs have cooled Twitter's renownedly open corporate culture, which is admired by its staff.
He had already fired the CEO and the top financial and legal officials from the company, reorganizing the senior ranks. Others left over the past week, including those in charge of the company's marketing, human resources, and advertising departments.
Musk tweeted that the organisation under his ownership "will be super focused on hardcore software engineering, design, infosec & server hardware" prior to paying $44 billion for Twitter.
Hundreds of people flocked to the company's Slack channels to say goodbye shortly after the email arrived in Twitter employees' inboxes, two employees told Reuters. The sources claimed that Musk was invited to join the channel.
All employee access to Twitter's offices, including the one in San Francisco (pictured above), has been suspended, and the company has advised employees to "go home" until their employment status is known.
The first week that Musk has owned Twitter has been chaotic and uncertain. It was decided to cancel two company-wide meetings just hours before they were scheduled.
According to two sources familiar with the situation and an internal Slack message examined by Reuters, Musk has also instructed Twitter Inc.'s teams to find up to $1 billion in annual infrastructure cost savings.
One senior Twitter employee claimed that managers had been forbidden from holding team meetings or speaking with employees directly and added that they were being watched.
The person working in twitter expressed that it feels like they are working with the Gestapo. One week after Musk's $44 billion acquisition was complete, an Audi representative told DailyMail.com on Thursday, "We have temporarily paused paid support on Twitter and will continue to evaluate the situation."
Musk is facing threats to Twitter's revenue even as he makes cost cuts, as an increasing number of businesses pause their advertising on the platform out of uncertainty about whether it will remain safe for brands.
A representative for General Mills, which also produces Pillsbury, Betty Crocker, and Häagen-Dazs, also acknowledged a downturn in sales by stating: "We will continue to monitor this new direction and evaluate our marketing spend."
Additionally, according to a Wall Street Journal article citing people with knowledge of the situation, Oreo manufacturer Mondelez International and pharmaceutical behemoth Pfizer have both suspended their Twitter advertising expenditures.
Musk, the CEO of rival Tesla, has raised concerns among automakers about fair treatment, and last week General Motors announced it had "temporarily paused" all paid Twitter advertising.
Musk is struggling to persuade advertisers that he will keep his word after making a last-week commitment to prevent Twitter from devolving into a "free-for-all hellscape." According to reports, some advertisers have vowed to permanently stop using Twitter if former president Donald Trump is permitted to run again. Musk stated on Wednesday that it would take several weeks before a procedure to restore banned accounts is established.
With the exception of the few that Musk responds to via tweet, Twitter has stopped responding to all press inquiries.
An important advertising agency's media buyer, who asked to remain anonymous for fear of retaliation, said the firm would meet with Musk this week to discuss how the Tesla CEO intends to handle false information on social media. Additionally, the buyer wanted clarification on how Musk's promise fit with his own conduct, including a weekend tweet that spread a bogus conspiracy theory regarding the assault on US House Speaker Nancy Pelosi's husband Paul.
During Musk's first week as CEO, podcaster and angel investor Jason Calacanis tweeted on Monday that meetings with advertisers and marketers at Twitter had been "very productive."
Musk is now under pressure to avoid alienating the advertisers who generate more than 90% of Twitter's revenue after tweeting in 2019 about his dislike of advertising. He is spending his first week as CEO in New York, where he is meeting with businesses that give Twitter more than $5 billion a year with the help of venture capitalist friends.
The second media buyer, who declined to identify the advertisers because the source was not authorized to do so, claimed that some clients have already started to pause ad spending on Twitter this week. The buyer claimed that due to the months-long turmoil surrounding the deal and some clients' reactions to worries about child sexual abuse content on Twitter, some clients had already stopped using Twitter.
Musk polled users on Twitter on Wednesday night about whether advertisers should support freedom of speech or "political correctness" while he was meeting with major agencies and advertisers this week.
Nearly 80% of the more than two million voters selected "freedom of speech" as their answer. The media buyer remarked that provocations of this nature do not contribute to calming the waters.
Allie Wassum, global director of social and integrated media for Jordan shoe brand, owned by Nike, wrote on Linkedin that "Elon is not a platform brands can/should advertise on, unless Elon hires new leaders committed to keeping this "free" platform safe from hate speech." When contacted for additional comment, Wassum remained silent.
According to a person familiar with the situation, IPG, an advertising holding company that represents well-known clients like Coca-Cola and American Express, has advised clients to pause their Twitter advertisements for the upcoming week.