‘Open bowl’ 2023, Elon Musk gives ‘shocking red packets’ to employees

“Lucky” no one wants

Six weeks ago, Twitter CEO, billionaire Elon Musk “guaranteeed” that he would not fire any more employees and stopped doing this. However, according to insiders, Twitter is already preparing another round of layoffs in the coming weeks. And when it ends, the social network’s remaining employees will be at its lowest level in a decade.

Reportedly, 50 employees in charge of product organization at Twitter will be laid off in the next round of cuts, at the beginning of the new year. Business Insider also reported that two weeks ago, dozens of employees in Twitter’s advertising and branding departments were laid off. Many employees at the Singapore and Australia branch offices also met the same fate.

People predict that Elon Musk will close many international offices and some smaller offices in the US in the future. This may cause Twitter’s staff to not reach 2,000 people – like going back to Twitter 10 years ago. Because Twitter went public in 2013 and has 2,700 employees since then.

If there are only 2,000 employees left, that means Elon Musk has cut more than 75% of the original total number of employees – a much larger number than expected when he first took over the social network.

1 year full of “nightmare”

At Twitter’s first round of layoffs, Musk cut staff by about half. Hundreds of other people, including senior employees, also submitted their resignations after Musk told them in an email that they had to agree to his way of doing things or leave. In a row, employees were suddenly fired without reason or any explanation.

Not long ago, Musk informed employees that there would be no more layoffs. However, Twitter’s employees did not believe the CEO’s statements. “He just said things that sounded appropriate at the time,” they said. And they were right.

Since taking over, Musk has repeatedly lamented the state of Twitter’s business, comparing it to a plane crashing into the ground. At the same time, he also blamed the old leaders and their spending.

However, within three months of his leadership, hundreds of advertisers have left the social networking platform due to many of the changes Musk has made that directly affect their operations. Meanwhile, Twitter’s business relies heavily on advertising revenue.

In the first quarter of 2022, Twitter announced a profit of $ 513 million, but since Elon Musk took power, Twitter lost $ 3 million / day.

To cut costs, he has limited many employee benefits such as reproductive health care or omitted free meals. Some offices in San Francisco and New York have also turned into bedrooms and bathrooms to save on resting costs. And yet, the reduction of security guards and facilities also makes many of Twitter’s offices “unhygienic”.

The reason behind?

In fact, to buy Twitter for $ 44 billion, Elon Musk had to send loan requests to banks with a total loan amount of up to $ 13 billion. A recent Financial Times report said that Twitter will have to pay the first interest and may have to pay it as early as this month. However, with a difficult financial situation, whether the company can pay a profit of $ 1.5 billion / year is still a mystery.

In the face of huge profits, perhaps this is one of the reasons why Musk decided to conduct the next round of staff cuts in 2023. This is terrible news for the remaining Twitter employees when the year turns out. only three weeks.

Whether this time, Twitter will cut how many employees in total, the information will continue to be updated.

Reference: BI