After signing a contract to be purchased by billionaire Elon Musk, Twitter Inc. has confirmed to workers that there are no plans for company-wide layoffs. This comes after a media source said that Musk is considering layoffs at the business.
A person who saw the email claims Twitter General Counsel Sean Edgett informed staff members on Thursday that there are no layoffs planned.
The Washington Post earlier on Thursday claimed, citing interviews and records, that Elon Musk informed potential investors in his attempt to purchase Twitter that he intended to lay off about 75% of the company’s 7,500 employees.
Regardless of who controls the business, employment layoffs are anticipated in the near future, according to a Washington Post investigation.
According to the source, Twitter’s present management intended to reduce the company’s payroll by around $800 million by the end of next year, which would result in the departure of close to a quarter of the employees.
A request for comment from Reuters did not receive a response right away from Twitter.
The Washington Post stated that despite assurances from the social media company’s human resources department that mass layoffs were not in the works, substantial preparations to fire personnel and reduce infrastructure expenses were in place even before Musk made an acquisition bid.
In May, Musk attempted to back out of the agreement to purchase Twitter, claiming the firm had misrepresented the amount of spam and bot accounts on the social media site. This sparked a string of legal disputes between the two sides.
Musk changed his mind earlier this month and declared he would carry out the agreement under its original provisions.