Elon Musk plans to chop Twitter’s staff by nearly 75 per cent once he has bought the social media platform for $44bn, leaked documents suggest.
The Tesla billionaire told prospective investors in his deal to purchase Twitter that he intends to cut back the corporate’s staff from around 7,500 all the way down to just over 2,000, reports The Washington Post.
The world’s richest person renewed his try and buy the corporate earlier this month after attempting to back out of the acquisition and has been given until 28 October by a Delaware court to finish the deal.
Twitter’s current board had already planned to cut back wages at the corporate by around $800m by the top of 2023 and reduce staff by 25 per cent, in line with the newspaper.
Mr Musk agreed to purchase the corporate for $54.20 a share in April, but by July had indicated that he had modified his mind, citing bot and spam issues.
Twitter then sued him in Delaware Chancery Court to force the deal to undergo. In his letter to Twitter, Mr Musk agreed to pay the complete price but said that was contingent on securing the obligatory funding to pay it.
“The intention of the corporate is to shut the transaction at $54.20 per share,” Twitter said in a press release after receiving the letter.
If the deal goes through next Friday, Mr Musk would immediately develop into its latest owner.
During Tesla’s quarterly earnings call on Wednesday, Mr Musk admitted that he was “obviously overpaying” for San Francisco-based Twitter.
But he said that he was “excited in regards to the Twitter situation” and described the corporate as an asset with “incredible potential” that has “form of languished for a very long time.”
“The simple part for Musk was buying Twitter and the hard part is fixing it,” Dan Ives, a financial analyst with Wedbush Securities told the newspaper. “It’s going to be a herculean challenge to show this around.”
The Independent has reached out to Twitter for comment.
Mr Musk has suggested that purchasing Twitter is step one in creating an “the whole lot app” he calls X, which might be modelled after China’s WeChat.
He has also hinted that the platform will protect free speech and permit the return of banned users comparable to Donald Trump, whose account was locked after the January 6 revolt by his supporters.