The plan, which Musk has shared with prospective investors in Twitter, will affect more than 5,000 jobs and potentially lead to a wave of voluntary resignations, according to the Post.
Even if Twitter’s deal with Musk falls through, a smaller-scale layoff might still be inevitable. Twitter’s current management planned to cut 25 percent of the company’s headcount to save $800 million in cost by the end of 2023, the Post reported, citing corporate documents and interviews with people familiar with the matter. The plan was put on hold when Twitter’s board signed the merger agreement with Musk in April.
On Oct. 20, Twitter’s general counsel Sean Edgett sent out a note to all employees saying the company did not have any confirmation from Musk about his plans, Reuters reported.
In an earnings call with Tesla investors on Oct. 19, Musk said he believes he and other investors are “obviously overpaying for Twitter.” However, “the long-term potential for Twitter, in my view, is, in order of magnitude, greater than its current value,” he added.
Musk’s $44 billion acquisition of Twitter is expected to close by Oct. 28. Twitter didn’t immediately respond to request for comment.