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Twitter staff brace for major layoffs

Written by Wed 2 Nov 2022

An image of Elon Musk is seen on a smartphone placed on printed Twitter logos in this picture illustration taken

Employees at Twitter are preparing themselves for a major set of layoffs, as around 2,000 staff, or 25% of the workforce, may be dismissed as part of an extensive overhaul.

Soon after buying Twitter for $44 billion, new owner Elon Musk appointed himself CEO, dissolved the board of directors and fired leading executives.

Earlier reports from the Washington Post stated Musk told prospective investors in his deal to buy the company that he planned to remove nearly 75% of its workforce. However, Musk reportedly told staff at Twitter that such a large number layoffs would not materialise.

While Musk is making these cuts now, even before his purchase of Twitter, the social media firm signaled that economic struggles may result in around 25% of staff being removed from their posts.

Uncertainty around how many staff will be fired, and when this may take place, is reportedly damaging staff morale and leading to employees leaving the social media platform. It is unclear what, if any, impact less staff will have on the practical functions of Twitter.

Twitter is far from the only tech firm to reduce its workforce in recent months amid looming recessions, as Microsoft announced close to 1,000 job cuts and Coinbase laid off 1,100 employees in June.

According to data published by Crunchbase, more than 45,000 tech workers have lost their jobs in the United States alone, up until October this year. When this is combined with hiring slowdowns, job instability at tech firms is at a high level.

With new research from the 2023 State of IT report finding that 83% of respondents are concerned about the possibility of a recession next year, signs point to this challenge continuing for the foreseeable future. However, those employees who do fall victim to job cuts may not find it difficult to obtain a new job, if they have in-demand tech skills.

It’s no secret that many high-profile firms are having major issues in recruiting skilled tech talent. But, being forced to change jobs on a regular basis will likely have a negative impact on the lives of tech workers, who may have to relocate to find a job that suits them.

Image Source: Reuters

Written by Wed 2 Nov 2022

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