Twitter CEO Elon Musk Seems To Be Making Plans To Lay-off Employees

Summary:

• Musk's claim is that Twitter has been poorly managed.
• Musk has asked managers and consultants to suggest which employees should be fired.

Musk may be making lay-off plans

People with knowledge of the situation claim that Elon Musk has started making preparations for widespread layoffs at Twitter as the billionaire businessman shakes up the social media giant just days after finalizing the $44 billion acquisition of the platform.

According to two people with knowledge of the situation, Musk has asked managers and consultants to suggest which employees should be fired and which should be kept on. According to the people, Musk is not requesting a specific number of layoffs from Twitter's 7,500 employees. According to one of the people, he prefers to dismiss those who do not support him as leader.

After Musk completed the transaction to take the San Francisco social media company private on Thursday evening, he swiftly fired a number of key officials, including the CEO and the head of legal, policy, and trust, Vijaya Gadde.

The executives were anticipated to get golden parachutes as per the merger deal; in Agrawal's case, this amounted to approximately $60 million. Two sources with knowledge of the case said that Musk fired the executives "for reason," which implied that he claimed to have a legitimate legal justification for doing so. As a result, the payouts may be void.

According to one of the persons, Musk's claim in this case is that Twitter has been poorly managed and that without his proposal, the stock value of the firm would have plummeted. A person acquainted with the executives' thinking claims that they are considering their legal alternatives before making a choice. It is unusual to refuse severance benefits tied to purchases, and the "for cause" clause often demands that misbehavior occurred.

The $44 billion deal's completion ushers in a new era for Twitter, one in which the CEO of Tesla and SpaceX will work to transform the company's failing operations, spur product innovation, and alter its content moderation.

Musk, who is now going by the handle "Chief Twit," was active on Twitter over the weekend. He shared a penis meme, made fun of an automated message that was ostensibly sent to him but was actually intended for new hires, and made hints about upcoming policy changes.

Musk, on the other hand, has concentrated on the product and engineering. He has previously stated that he would personally "oversee software development" instead of appointing anyone to any C-suite executive posts, according to private messages revealed in court documents.

Four sources claimed that David Sacks, a venture capitalist and close friend of Elon Musk, is a member of the team assisting Musk. He is also receiving advice from Antonio Gracias, a former Tesla director and the founder of the private equity firm Valor Equity Partners, a source claimed.

Sources: ft.com