Elon Musk is reportedly set to slash Twitter’s workforce by 50%, the equivalent of around 3,700 jobs, as he looks to reduce the company’s operating costs. Additionally, the new owner will tell employees that they must return to the office, something he has also done at Tesla and SpaceX.
In the run-up to Musk’s takeover of Twitter, reports circulated that he was planning to cut 75% of its workforce, or around 5,000 people. The company said there were no cuts planned, and it seems that the 75% figure was wrong, but Musk is now reportedly halving the number of Twitter employees.
The report comes from Bloomberg, which cites people familiar with the matter. The publication writes that Musk intends to inform affected workers this Friday. Engineers and director-level staff from Tesla are said to have reviewed the layoff lists, ranked on employees’ contributions to Twitter’s code during their time at the firm.
Another part of Musk’s plan is to require employees enjoying the company’s work-anywhere policy to return to the offices in and beyond San Francisco, though some exceptions could be made. This doesn’t come as a surprise, given the world’s richest man’s feelings toward remote working.
Musk sent memos to SpaceX employees and Tesla executives in June directing that workers spend a minimum of 40 hours in the office per week or quit. The sudden influx of staff at the latter’s Fremont, California plant meant there was a shortage of desks and parking spaces, problems that were still present in September.
Musk and his advisors have been considering different cost-cutting methods, including headcount reductions, at Twitter, so the final number of layoffs could change. One option is to give those let go 60 days’ worth of severance pay. Musk has already removed several top execs, including CEO Parag Agrawal, and placed himself in the Chief Executive Officer role.
In addition to the staff reductions, Musk is trying to increase Twitter’s revenue by revamping Twitter Blue. The updated service will cost $8 per month and offer several benefits, including verified status for subscribers.