Elon Musk, the new owner of Twitter, has asserted that a major round of layoffs at the microblogging platform were required due to the millions of dollars the company was losing daily.
He clarified that all those losing their jobs were given three months of severance pay, “which is 50% more than legally required,” in an effort to soften the blow.
“Regarding Twitter’s reduction in force, unfortunately there is no choice when the company is losing over $4M/day. Everyone exited was offered 3 months of severance, which is 50% more than legally required,” Musk tweeted.
A week after the $44 billion takeover by the billionaire business magnate, Twitter announced employment layoffs. With Musk in charge, a lot has happened, from letting go of executives to suggesting a new content moderation council.
In the days following his takeover, rumours surfaced that he intended to fire at least half the Twitter employees in an effort to reduce expenses and save money. Musk first denied the accusations, but on Friday he reversed course and started firing staff members.
Hours prior to the start of the first round of mass layoffs, Twitter declared in an internal memo to staff, “In an effort to place Twitter on a healthy path, we will go through the difficult process of reducing our global workforce on Friday.”
The cuts appear to be as severe as they were broad, hitting both Twitter’s marketing division and its trust and safety teams, which are responsible for content moderation. There are rumours that the company’s entire human rights team was fired.
Following the layoffs, Twitter employees filed a class action lawsuit against the tech giant, claiming that the firm violated federal and California law by performing mass layoffs without giving the requisite 60-day notice.