The new head of Twitter, Elon Musk, has laid off about 50% of the employees at the social media company. The billionaire sent an email to all Twitter employees on Thursday evening, informing them whether their employment had been terminated.
Musk clarified in a tweet Friday that downsizing the workforce is inevitable because Twitter is losing more than $4 million a day. But he confirmed that everyone who was abandoned was offered three months’ compensation, noting that it is 50% more than the amount required by law.
Twitter begins mass layoffs – Elon Musk says ‘no choice’, citing $4 million a day loss
Twitter employees filed a federal lawsuit Thursday accusing the social media giant of violating a federal law called the Employment Amendment and Retraining Notice (WARN) law that governs employment termination notice.
Huge drop in revenue
Musk also revealed in a tweet on Friday that “Twitter has seen a massive drop in revenue.” Prior to its takeover, the social media company stated that it generated 90% of its revenue from advertisers. However, major companies have stopped advertising on the platform, citing concerns about how Musk might influence content moderation policies.
And the billionaire claimed that “activist groups putting pressure on advertisers” led to a decrease in revenue, “although nothing changed with moderation in content and we did everything we could to please activists,” he tweeted on Friday. “They are trying to destroy freedom of expression in America.”
In an effort to generate revenue for Twitter, Musk decided to charge users $8 per month to have a blue checkmark in their name.