Twitter Acquisition: Elon Musk Says Platform is Losing $4 Million Daily
- Billionaire businessman Elon Musk has given reasons for the mass sack going on at Twitter
- The platform's new owner said that the company is losing a lot of money every day due to a large workforce
- He also said there had been a decline in ad revenue due to pressures from activist groups asking advertisers to pause their ads on the platform
Twitter's new owner, Elon Musk, has explained the ongoing massive purge at the company.
The wealthiest man in the world says the company is losing about $4 million daily due to a large workforce.
Source: Getty Images
No options left for Musk
The Tesla CEO said the company had been left with no option but to let people go but stopped short of explaining how the large workforce is causing the company the amount.
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Reports quoted Musk as saying that all the staff received three months' severance packages, about 50 per cent of their entitlements - more than legally required.
He said:
"Regarding Twitter's reduction in force, unfortunately, there is no choice when the company is losing over $4M/day. Everyone exited was offered 3 months of severance, which is 50% more than legally required."
There were speculations that he planned to sack about 3,700 people.
Earlier in the week, Musk announced an $8 subscription for verified Twitter accounts to retain their badges.
Despite the outrage that greeted the announcement, the SpaceX CEO doubled down on the decision.
Controversy over subscription fee
'Trash me all day, but it'll cost $8,' he said in a tweet on Saturday.
Some companies and corporate organisations have paused their advertisements on Twitter due to what some said is a developing situation.
Among them is Volkswagen, which said it is monitoring the situation 'and will decide about the next steps.'
Musk had blamed the decline in ad revenue due to activist groups pressuring advertisers, despite content moderation remaining the same.
Musk had on Friday lamented about a drop in Twitter's ad revenue.
Twitter office in Ghana Hit by mass sack as Elon Musk takes over, workers begin class action lawsuit
Legit.ng reported that one year after it opened an office in Ghana, its first in Africa, Twitter has laid off almost the entire workforce in the West African country in a massive global layoff which has hit workers at the microblogging site since Elon Musk bought the company a week ago.
The layoff also comes three days after Twitter workers in Ghana officially resumed office in Ghana. Many were sacked as part of a purge Musk embarked upon since he took over the company.
It is unclear how many workers were affected at the Africa Office, but reports say the social media firm plans to cut about 3,700 jobs.
Source: Legit.ng
