Will Musk's Twitter go for massive layoffs now?
According to reports, Tesla CEO Elon Musk may not have to pay stock grants if he lays off employees before November 1; It’s still unclear how many Twitter workers will lose jobs
image for illustrative purpose
San Francisco: New Twitter boss Elon Musk has reportedly ordered company-wide layoffs and some departments will be more affected than others, the media reported. According to The New York Times, the layoffs could occur before November 1, the same day when employees are supposed to get their stock grants, which 'typically represent a significant portion' of their pay. According to the report, the new Twitter boss may not have to pay these grants if he lays off employees before November 1.
Although Musk is supposed to pay the employees cash in place of their stock under the merger agreement. Twitter did not comment on the report that came out on Saturday.
It is still unclear how many Twitter workers will be affected by the reported job cuts.
The Tesla CEO is expected to reorganise Twitter and cut the workforce by a massive margin. Musk, however, told Twitter employees last week, during his first visit to the company headquarters with a kitchen sink in his hands, that he is not going to lay off 75 per cent of the workforce (5,600 employees). Twitter has around 7,500 employees.
Musk completed his $44 billion acquisition of Twitter on Friday, and fired top executives, including former CEO Parag Agrawal, chief financial officer Ned Segal, and policy chief Vijaya Gadde, among others.
