Tesla CEO Elon Musk announced layoffs for 50% of the company’s workforce in a tweet. The move was unexpected and left many wondering why such a drastic measure was taken. The company’s new owner claims it is losing $4 million daily despite its efforts to assure advertisers that content moderation is in place. Today, we’re taking a look at the story behind the layoffs and what may have led to them. What are Elon Musk Twitter layoffs? Has Twitter been sued for mass layoffs? Keep Reading!
Here’s what you need to know about the Twitter layoffs and what they mean for you:
Why is Twitter Laying Off so Many Employees?
Twitter is laying off a significant number of employees to reduce costs and become profitable. The company has been struggling to grow its user base and generate revenue and has been under pressure from investors to cut costs. Twitter has also been investing heavily in new features and product development, which has led to increased expenses. As a result, the company is now seeking to reduce its workforce to save money.
Daily Financial Losses
In his tweet on Friday evening, Musk said that his company is losing over $4M a day due to Twitter’s reduction in force, which unfortunately cannot be avoided. As a result of Musk’s $44 billion ($39 billion) takeover of the platform last week, every exiting employee received three months of severance pay. As a result of his $44 billion ($39 billion) acquisition, Musk is reportedly looking for ways to reduce costs at the company.
Twitter has not said how many jobs will be cut, but it is expected to be a significant number. Musk will dismiss close to 50% of the company’s employees, according to people familiar with his plans. As a result of fear of professional reprisals, these people spoke on condition of anonymity. Elon Musk Twitter layoffs are likely to impact all departments and functions at the company.
Improvements to Financial Performance
Twitter has been under pressure to improve its financial performance in recent years, and this latest move is part of that effort. The company will hope that by reducing its costs, it can become profitable and please investors. However, it remains to be seen whether this will be successful, as Twitter faces significant challenges in growing its business.
Time will tell whether the layoffs will help Twitter turn things around or if they will simply be a short-term measure to save money. Either way, it is clear that the company is in a difficult situation and is taking drastic measures to try to improve its financial performance.
Is Twitter Being Sued for Mass Layoffs?
In a class-action lawsuit filed Thursday, five former Twitter employees claim the company acted in violation of federal and state laws by laying off massive numbers of workers without notifying them first.
A large-scale layoff must be notified 60 days in advance to workers and state and local governments under the Worker Adjustment and Retraining Notification Act (WARN). There is a period of unemployment insurance that allows workers a certain amount of time to find a new job, figure out how to reduce family expenses, learn new skills, or claim benefits.
There is no such notice provided to Twitter employees; layoffs were informed Thursday night and into Friday that they would be put on “non-working notice” for 60 or 90 days. It is still considered that the employees are employees for the next 60 or 90 days, but they cannot work during that time. They will, however, continue to receive compensation and benefits.
The amount of pay that should be paid to employees over 60 or 90 days should be equal to what they would have earned otherwise. In a statement from Cornell University’s School of Industrial and Labor Relations, Kate Bronfenbrenner said Twitter had committed to doing that.
Elon Musk Twitter layoffs have affected these areas the most, according to tweets from people who have been laid off. Several other Twitter executives were laid off in the wake of Musk’s firing of Twitter’s senior leadership last week, including Arnaud Weber, VP of consumer product engineering, and Tony Haile, senior director of product management. There are several activists working with other companies to apply pressure for them to stop buying Twitter ads until Musk reins in the spread of hate speech and conspiracy theories that are being spread all over the internet.