Elon Musk announces layoffs, says Twitter losing millions per day

Elon Musk, the new owner of microblogging platform Twitter announced layoffs claiming that it was a necessary step as the company was losing millions of dollars every day.

Taking a softer stand post the layoffs, Musk clarified that the employees who will be laid-off will be offered three months of severance pay, “which is 50 per cent more than legally required”.

Chaos ensued as about half of the Twitter staff has been laid off amid retrenchment moves. As per sources, nearly, 3,800 employees have been reported to be relieved.

“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,” Musk said in a tweet.

The announcement of lay-offs came a week after business tycoon and the richest man on Earth, Elon Musk took over the platform after a $44 billion buyout. 

Since taking over the platform, Musk has fired executives and proposed new content moderation council. Musk had fires CEO Parag Agrawal, Chief Financial Officer Ned Segal, and legal affairs and policy chief Vijaya Gadde – who were sacked.

Twitter's current worries extend beyond retrenchment. Leading companies have suspended their Twitter advertising, including General Mills Inc. and premium manufacturer Audi of America. The most recent addition to the list is United Airlines Holdings.