According to some sources familiar with the matter, Elon Musk has let banks he borrowed money from know that he plans to lay off Twitter employees to increase profitability. Information contrary to what he has said so far.
Since its acquisition by Elon Musk for 41 billion euros, Twitter users have been waiting. The businessman has still not precisely indicated his plans for the social network. The employees are confused. The company’s management barely reassured them by emphasizing that no layoffs will take place following the change in leadership.
But, in the shadows, Elon Musk would have other plans in mind. Indeed, according to a Bloomberg report, the billionaire does plan to lay off some employees. To be able to afford the social network, the latter has indeed sold several million shares of Tesla, but has also borrowed from a certain number of banks. However, to obtain these loans, the richest man in the world had to ensure that this investment would be profitable.
Elon Musk plans to lay off Twitter employees
During a call with several banks, Elon Musk would have indicated that he intends to focus first on the financial results of Twitter. He thus explicitly raised the idea of resorting to layoffs, contrary to what he and Twitter have publicly claimed. However, no details about the departments or countries concerned were mentioned. In addition, to this plan would be added the possibility of monetizing the platform through various subscriptions.
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According to people present at the meetings between Twitter and the billionaire, the latter would not have discussed these eventualities with the members of the board of shareholders. On the other hand, he would have specified again that his objective would be to make the company profitable. During his TED conference a few days ago, having taken place after his takeover proposal on Twitter, Elon Musk proudly said: “I don’t care at all about the economic aspect”.
Source : Bloomberg