New Delhi: World’s richest man and Tesla CEO, Elon Musk is reportedly planning to lay off most of the Twitter’s workforce. This will be done once Musk signs his $44 billion deal to buy the social network giant.
Musk planning to lay off 75% employees
According to Variety, Musk told potential Twitter investors that he planned to fire around 75% of the 7,500 workers at the social media business. The Washington Post was the first to publish the specific details.
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Overpaying for Twitter says Musk
Musk claimed he was overpaying for Twitter on Wednesday’s third-quarter 2022 earnings call for Tesla.
After three months of attempting to back out of the transaction, he decided earlier this month to move forward with his initial USD 54.20/share offer for Twitter.
“Although, obviously, myself and the other investors are obviously overpaying for Twitter right now, the long-term potential for Twitter in my view is an order of magnitude greater than its current value,” Musk said.
‘Significant contributors should have nothing to worry about’
A Q&A session was organized with Twitter employees on June 16. During the session Musk said that there will be a “rationalization of headcount.” Assuring the dedicated workers he further said, “Anyone who is a significant contributor should have nothing to worry about.”
That was before Musk attempted to back out of the deal in early July, at which point the business sued him in an effort to enforce the merger agreement’s conditions. Musk appears to have changed his mind after recognizing that he would probably lose his legal battle with Twitter on the arrangement.
A judge presiding over the case had postponed the Twitter agreement legal proceedings until October 28.
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