Twitter Is Drafting Broad Job Cuts in Whirlwind First Weekend Under Elon Musk

Twitter Inc. has drawn up plans for a wide-scale demolition as part of a whirlwind several days in which the new CEO Elon Musk fired the top management, saying it was for reason, he wanted to reassure users and advertisers about the moderation of content and continued to welcome jokes and arguments on the site. .

The proposed dissolution under consideration by Mr. Musk, who took the social media platform private on Thursday for $44 billion, is expected to cut engineering positions and affect other areas of the company, according to a person familiar with the plans. Twitter has about 7,500 employees, according to disclosures made earlier this year. The full scale of the cuts in question could not be determined.

Mr. Musk has fired Twitter CEO Parag Agrawal and three other top executives for cause and says he doesn’t need to pay the high-dollar severance packages that were expected, according to two people familiar with the matter. The executives who left are weighing their options, one of the people said. Mr Agrawal did not respond to a request for comment.

Twitter’s two top executives were set to collect more than $100 million in severance packages, according to figures previously disclosed in securities filings, according to estimates from Equilar, compensation data and company analysis.

After taking, Mr. Musk worked with a group of colleagues that included former Twitter product leader and venture capitalist Sriram Krishnan and attorney Alex Spiro. Mr. Krishnan wrote on Sunday that he is helping Mr. Musk via Twitter “for a while with some great people.”

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Twitter has posted losses in eight of the past 10 fiscal years, according to FactSet, and Mr.

Facebook parent Meta Platforms Inc. it spoiled investors with slow revenue and committed to spending tens of billions more towards the construction of the metaverse, which did not attract a significant user base. The market value of Meta fell below 300 billion dollars for the first time since the beginning of 2016. YouTube posted its first decline in ad revenue, while Snapchat parent Snap Inc. he warned investors that he is working on the assumption of no profit in this quarter from a year ago.

One of the first issues Mr. Musk aims to address the costs, according to people familiar with the matter. He told staff in June that he believed the cost was “not a good situation” for Twitter, according to people who watched the meeting at the time. He did not rule out layoffs at the time, adding that anyone with a significant contribution should not worry, according to People. The New York Times previously reported on Twitter’s plans for job cuts and layoffs.

Several employees have expressed concern that Mr. Musk may move to cut jobs before Nov. 1, the date of delivery of the Twitter compensation program. Employee benefits were expected to be paid in cash after Mr. Musk, according to people familiar with the matter. A number of workers said they were concerned that Mr. Musk may try to avoid making those payments if their employment is terminated before Nov.

“This is a lie,” Mr. Musk wrote on Sunday evening, responding to a tweet that highlighted concerns in a New York Times article.

On Thursday, Mr. Musk took steps to reassure Madison Avenue, publishing a letter saying he strongly believes “that advertising, when done right, can entertain, entertain and inform.” On Friday, he told advertisers that Twitter would “create a content moderation council with diverse views.” He added: “No important decisions of content or account recovery will take place before the council meets.”

Some advertisers have expressed concern that Mr. Musk on free speech will lead to the transfer of offensive content to some users or at least the absence of the seller.

“Twitter’s ad business is already on shaky ground,” said Jasmine Enberg, principal analyst at Insider Intelligence, a market research firm. In the coming days, he said, Mr. Musk will need to “set clear guidelines on what content moderation will look like if you want to keep advertisers around.”

Twitter spent part of the week dealing with some content issues that arose after Mr. Musk.

Many non-profit organizations in recent days point to a rapid increase in hate speech on the platform, including the Anti-Defamation League and the Network Contagion Research Institute.

The ADL, a Jewish advocacy group that monitors anti-Semitism in the US, said it had identified more than 1,200 tweets and retweets that spread anti-Semitic memes and called coordinated effort which followed Mr. Musk. The Network Contagion Research Institute, which studies social threats online, tweeted data on Friday showing that use of the N word on Twitter jumped 500% in the previous 12 hours.

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National Basketball Association star LeBron James cited data On Saturday, tweeting, “I don’t know Elon Musk and, tbh, I don’t care who runs twitter. But I will say that if this is true, I hope he and his people take this seriously because it’s scary.” He added: “Many misguided people say that hate speech is free speech.

Yoel Roth, Twitter’s head of safety and integrity, said Saturday that a small number of accounts are behind many tweets of slurs or hateful content, including 50,000 tweets of another race from 300 accounts. The company is taking action to block users who are involved in the “stalking campaign” and will continue to work to fix the issue, he said.

Mr. Musk also entered the fray. On Sunday morning, he posted a link to an online post about what happened to Friday’s violent attack on House Speaker Nancy Pelosi’s husband. “There’s a little bit more to the story than meets the eye,” said Mr. Musk on Twitter. He later deleted the tweet.

Write to Alexa Corse at [email protected] and Salvador Rodriguez at [email protected]

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