After news emerged that Elon Musk had plans to slash 75% of Twitter’s workforce, the social media firm has sent an email to employees dispelling these rumors.
According to a report from the Washington Post, Musk informed prospective investors that under his watch, massive layoffs were coming for the company’s 7,500 employees.
“A 75% headcount cut would indicate, at least out of the gates, stronger free cash flow and profitability, which would be attractive to investors looking to get in on the deal,” said Dan Ives, an analyst at Wedbush. “That said, you can’t cut your way to growth.”
However, Twitter General Counsel Sean Edgett sent out an email following the report, communicating that the company is not expecting mass layoffs. Despite this, layoffs were already in discussion prior to Musk offering to purchase the company last spring, so job cuts are still expected to impact Twitter no matter who takes ownership.