Since Elon Musk took over Twitter, there has been a revamping process ongoing. But, this process is leading to many radical and sudden decisions. In October 2022, the Tesla owner completed the $44 billion deal after the Twitter lawsuit. After that, he dethroned many top-tier executives including the former CEO Parag Agrawal. But, on November 4th, 2022, Musk implemented mass layoffs.
The layoffs led to the sacking of half of its 7,500 employees globally. Since then, many other tech and entertainment giants have started to lay off their employees due to a potential impending recession and poor third-quarter reports. But, the last layoff was not it for the employees at the micro-blogging site. Reportedly, the business mogul has fired more employees.
Also Read: Elon Musk Twitter Takeover: Employees Are Suing The Platform For ‘Mass Layoffs’
Elon Musk Fires More Than 4,000 Contract Workers At Twitter
When the last layoff at Twitter happened, the employees, who were terminated, alleged that they were sacked without prior notice. But, as per The Worker Adjustment and Retraining Notification Act, workers need to be informed 60 days before their termination. The memo that was sent cited that to conduct Twitter on a healthy path, they are sacking their employees.
Getting word that a large number of number of Twitter contractors were just laid off this afternoon with no notice, both in the US and abroad. Functions affected appear to include content moderation, real estate, and marketing, among others
— Casey Newton (@CaseyNewton) November 13, 2022
In another similar move, many contract workers are fired. This termination, according to the employees, was very sudden. On the weekend, the employees discovered that they were not able to access Slack and other software and systems. According to Platformer, around 4,400 of the 5,500 contract workers were sacked from the company.
Some of the employees told CNBC that there was no internal notice provided before these contract workers were sacked from the company. Most of these contract workers are from overseas including India.
Also Read: Is Elon Musk Trying To Compete With YouTube?
The CEO Warned That Twitter Could On The Road To Bankruptcy
In the released second-quarter results of the company, the microblogging platform received a huge blow. Though the company had $1.18 billion in revenue, it suffered a net loss of $344 million. Currently, the company is aiming to generate more and more revenue from advertising and subscriptions.
In the first email after Musk took over Twitter, he warned the employees that the company may be on the road to bankruptcy. He warned employees that if they do not find new channels to generate more revenue “bankruptcy is not out of the question.”
He said, “Without significant subscription revenue, there is a good chance Twitter will not survive the upcoming economic downturn. We need roughly half of our revenue to be subscription.”
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