Defending his move of massive layoffs at Twitter, new owner Elon Musk said there was no choice as the company was losing over $4 million a day. “Regarding Twitter’s reduction in force, unfortunately there is no choice when the company is losing over $4M/day,” Musk tweeted. “Everyone exited was offered 3 months of severance, which is 50% more than legally required,” he added. Hundreds of employees were handed the pink slips at Twitter on Friday as Musk started overhauling the social media platform which he bought for $44 billion late last month.
In India, staff from engineering, sales and marketing and communications teams were most impacted. Twitter was also sued in the US over Musk’s orders to fire employees without giving them enough time. Musk, however, said Twitter has seen a massive drop in revenue since he took over as advertisers and notable public figures start to exit the microblogging platform.
Moving away from relying completely on ad revenue, Musk plans to monetise Twitter’s services. He had initially proposed that Twitter would begin charging users $20 a month to retain their blue tick, but later settled at $8. “Trash me all day, but it’ll cost $8,” Musk said on Saturday. Further, Twitter could begin charging its users the monthly fee as early as November 7, according to a Bloomberg report.
Advertisers and users expressed concerns over what would happen to Twitter’s content moderation practices since numerous people were sacked. The company has, however, maintained that teams responsible for preventing the spread of misinformation saw fewer people being fired.
Yoel Roth, head of safety and integrity at Twitter said, “While we said goodbye to incredibly talented friends and colleagues yesterday, our core moderation capabilities remain in place.” Interestingly, US President Joe Biden said at a fundraiser that Twitter spews lies all across the world, as reported by Reuters on Saturday.