Twitter signage is displayed on a monitor on the floor of the New York Stock Exchange. (Photo: Michael Nagle/Bloomberg) In a memo seen by Bloomberg News, Twitter general counsel Sean Edgett warned workers to expect “tons of public rumours and speculation” as the closing of the deal nears. “We do not have any confirmation of the buyer’s plans following close and recommend not following rumours or leaked documents but rather wait for facts from us and the buyer directly,” he said.
The Washington Post reported that Musk’s plan for Twitter involves slashing its staff by 75% in a matter of months. Musk, whose $44-billion purchase of the social network is set to close by 28 October, would reduce Twitter’s staff to just over 2,000 people, compared with the 7,500 it currently employs, the Post said, citing documents and people familiar with the plans.
Bloomberg News confirmed that potential investors were told of the plan for cuts, along with an effort to double revenue within three years.
In his memo, Edgett said discussions about cost savings and planning occurred earlier in the year. “Those discussions stopped once the merger agreement was signed,” he said. “Since the merger agreement has been in place, there have been no plans for any company-wide layoffs.” BM/DM