After months of legal battle, Elon Musk is expected to seal the deal to buy Twitter by next week Friday, with talks progressing well between both parties. Chief Judge at Delaware Court of Chancery, Kathaleen McCormick, earlier in October, gave Musk until October 28th to close the deal. According to The Washington Post, Musk is planning a massive cut to Twitter’s workforce.
Twitter has around 7,500 workers, and Musk is reportedly planning to cut around 75 per cent of them, leaving only 2,000. Even if the acquisition by Musk falls through, which is unlikely at the moment, Twitter’s current management had already planned to cut the company’s payroll by $800 million by the end of 2023.
The effect of the cuts would be very significant. A former data scientist in charge of Twitter’s spam and health metrics, Edwin Chen told The Washington Post that the cuts proposed were “unimaginable,” and accounts would likely suffer hacks on Twitter and there might be exposure to child pornography.
“It would be a cascading effect,” Chen said, “where you’d have services going down and the people remaining not having the institutional knowledge to get them back up, and being completely demoralized and wanting to leave themselves.”
According to The Washington Post, Musk told investors he plans to double Twitter’s revenue in three years and triple the number of daily users without outlining how this would happen. Private equity giants T. Rowe Price, TPG and Warburg Pincus decided not to invest in the deal, while LinkedIn founder Reid Hoffman also passed on the deal.