Twitter Might Lose 75 Percent of Its Staff After Musk Takeover

Twitter could face massive job cuts once Elon Musk takes over.

According to interviews and documents obtained by The Washington Post, Musk has informed potential investors in the $44 billion acquisition that he will eliminate roughly 75 percent of Twitter’s 7,500-employee workforce. The acquisition will supposedly close by Oct. 28.

Twitter had already planned significant cuts to its workforce and infrastructure by the end of 2023, including a reported $800 million in payroll reductions. “Musk’s $44 billion bid, though hostile, is a golden ticket for the struggling company — potentially helping its leadership avoid painful announcements that would have demoralized the staff and possibly crippledthe service’s ability to combat misinformation, hate speech and spam,” the Post added. (It’s worth noting the newspaper is owned by Jeff Bezos, who’s made no secret of his intense rivalry with Musk.)

Twitter’s brain drain actually began months ago, with numerous employees departing the company rather than endure the drama over Musk’s acquisition. In September, Business Insider estimated that Twitter has suffered a net loss of nine percent of its staff. “Attrition has been so high that Twitter cited it in court proceedings as one of the damaging effects of Musk’s attempt to back out of the deal,” the publication noted at the time. “It increased even more sharply since early August, when many workers’ restricted stock units fully vested, meaning they could cash out their shares.”

Once Musk takes over Twitter, he can’t just cut his way to growth—he’ll need smart, talented people to turn the company around. Musk has hinted at plans to turn Twitter into a “super app” that offers users a combination of services in addition to social media. While “super apps” such as WeChat are hugely popular in Asia, it’s an open question whether they’d succeed in the same way with a U.S. audience. If Musk wants top talent, he’ll need to be prepared to pay for it.

6 Responses to “Twitter Might Lose 75 Percent of Its Staff After Musk Takeover”

  1. jake_leone

    I have already pointed out that Twitter needed to cut staff, upon an Elon takeover. And the reasons I gave, Half of Twitter is content moderation (not needed under Elon). And the rest only work 4hrs/week (Suru Murugesan, Twitter engineer).
    The next step, and this may sound crazy. Install a switch to turn on/off political groups at Elon’s whim. The reason for this. Doing just this will cause both sides of the political isle to declare (and pass laws declaring) Social Media, “The de-facto Public Square”. This will put Facebook, Tiktok, Google, Apple, Amazon – on the same footing as Twitter, most (if not all) will be affected by such statutes (equal protection clause of the U.S. Constitution).
    Twitter will already be ahead of the game, having eliminated the unneeded (under section 230), Censorship Unit.
    After firing 75% (I would say closer to 95% are non-infrastructure workers, and could be eliminated). Twitter would be very profitable. We might get to 95% just by attrition.

    Reinvest some of the earnings into the following:

    – Midjourney like image generation. Followed automatic content generation (by taking Midjourney image generation, into automated animation with sound, music, and voice). Literally buy MidJourney if needed.

    This will make Twitter a Tiktok and a Youtube, killer. But it won’t be cheap, but the cost for this is rapidly decreasing. Soon, Meta will have this capability. But it isn’t too late to develop this, but it requires money (AWS GPU rental) and a some (a few) expensive (and certified capable) AI engineers.
    Elon could try becoming a WeChat, but that will not be easy, without users.
    Developing attractions to Twitter, will increase users. At about 500 million users, I feel that an everything app is in play. At 200 million users, mostly political and press people, forget about it.

    Automatic Content Generation (ACG) = (image, video, animation, sound, voice, music) – automatically generated from user prompts.

    Automatic content generation will attract more users. Imagine having a service that could generate childrens cartoons? Not that far off. With that, and a few other genres, you can capture demographics. You can then create a successful everything app, by targeting wider demographics that are in fact major consumers.

  2. David Straley

    Of course he’ll be prepared to “pay for it.” No big deal.
    Sorry to be argumentative but Twitter is not rocket science.
    If Elon wanted to, he could scap the whole app and rebuild it from scratch in a few months with 100 people. *Easily .. Very easily* The technology is relatively simple.
    “Brain drain.” That was a joke, right?
    The *hard part* is *getting customers* and he already has that.

    David

  3. Lawrence Weinzimer

    No surprises and nothing new. Elon with his clear new, different vision, wiping the top management, this I completely understand. In my particular case, had exactly three (3) severance packages within a ten (10) year span from 1996-2006. This was to dissolve all of the staff in a fell swoop. Only partly was New York City and New York State jurisdictions the culprits. The reality: Sticking to the knitting in the core business’ organic mission should not mean to obliterate the existing staff. There are a variety of many plausible alternatives. For example: management should be enabled to make a performance review of each staff member after a quarter or half a year. No matter what anyone says in the 2020’s, there aren’t newfound ethics in business. You all realize this, too.