Twitter closes its offices before a wave of layoffs

Twitter closes offices ahead of wave of layoffs


Acquired by Elon Musk last week, Twitter closes its offices on Friday ahead of a global wave of layoffs, which could see its payroll halved. 

“To help ensure the safety of every employee and that of Twitter's systems and data, our offices will be temporarily closed and all badge access will be suspended,” the California-based company said Thursday in an internal email seen by the company. 'AFP.

The message tells employees that they will be notified by email whether or not their jobs are cut, without specifying the number of positions affected.

According to the Washington Post, Mr. Musk plans to lay off about 50% of the group's approximately 7,500 employees. As soon as he took power, he had dissolved the board of directors and fired the general manager and other senior officials.

To finance his takeover at 44 billion dollars, the billionaire entrepreneur heavily indebted the company whose financial health was already fragile since it recorded a significant deficit in the first two quarters of the year.

Mr. Musk has thus contracted loans amounting to 13 billion dollars, which will have to be repaid by Twitter and not by the boss of Tesla.

He also sold for around 15.5 billion dollars of its shares in the electric car maker in two waves, in April and August, and backed loans worth $12.5 billion to its Tesla securities.

One of the main ideas put forward by Mr. Musk to generate income is an 8 dollar per month subscription allowing users to have their account certified, to be exposed to less advertising and to benefit from various advantages.

This project has aroused much criticism and caution, especially among users who already have an authenticated account.

Mr. Musk must also deal with the concern of advertisers, who are wondering about the risks of a relaxation of content moderation.

Several groups have already decided to suspend their advertising expenditure on Twitter, including American agribusiness giant General Mills, American car manufacturer General Motors and its German competitor Volkswagen.

“Twitter having announced the revision of its brand safety guidelines, the group Volkswagen has recommended that its brands suspend their paid activities on the platform until further notice,” the Wolfsburg group confirmed to AFP on Friday.