Why Is Elon Musk Downsizing Twitter?

The social media company Twitter will begin laying off employees as soon as Saturday according to The New York Times. The report further said that Elon Musk wanted to complete the layoffs before November to save stock grants given to employees every year on November 1.

HIGHLIGHTS

• The New York Times reported massive job cuts on Twitter after Musk’s takeover
• The report said that Elon Musk wanted to save stock grants through job cuts
• Twitter will have a new content moderation council

How Many Employees Will Be Removed From Twitter?

As soon as Elon Musk completed the USD 44 billion Twitter deal, reports about massive layoffs of up to 75% of employees started pouring in from unconfirmed sources. The NYT reported that some teams would be trimmed more than others. The social media company has around 7,500 employees.

What Are The Stock Grants Given To Twitter Employees In November?

Elon Musk Downsizing Twitter

Twitter has a tradition of giving stock grants on every year November 1. These grants are a significant portion of employees’ pay. And by laying off employees before November, Elon Musk could avoid paying the grants. Musk has already assured investors to reduce the workforce and find new revenue streams for the social media company.

What Is Content Moderation Council?

Elon Musk cleared the air over Twitter content by announcing a content moderation council. He said that no major content decisions or account reinstatements would happen before the convening of the council. He also tweeted that they hadn’t made any changes in Twitter’s content moderation policies.

On Wednesday, Musk arrived at Twitter’s headquarters in San Francisco and met with engineers and advertising executives. The NYT reported that he asked his managers to prepare a list of employees to be laid off.

Source:- https://bit.ly/3SU9eMG

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