From the perspective of people power, Twitter is undeniably a shell of what it once was. Since Elon Musk took over the social media platform in late October 2022, the company has lost an estimated three-quarters of its workforce to layoffs and voluntary resignations. The cuts continued on Wednesday.
The company has therefore cut around 40 additional jobs in the areas of data science and engineering a report from The Information. A source close to the matter also confirmed Gizmodo’s layoffs on Wednesday, noting that the product software development, monetization and advertising forecasting teams were hardest hit.
The Ad Prediction Team was tasked with using machine-learning technology to determine the best way to target ads to Twitter users and to develop ad algorithms. Without that technical know-how, Twitter’s ability to optimize its ads and related revenue could be at risk, The Information reported.
And ads are something Twitter has fought with in his Musk era. Interest in paying for advertising space on the platform has declined since October. High-profile companies such as General Motors and United Airlines announced pauses in their Twitter advertising due to platform moderation concerns. Overall, the site’s U.S. ad revenue was 80% below internal expectations for the season, according to the company a December 2022 report from the New York Times.
The company’s desperation is evident in response. In a move that is likely at least partly a financial decision, Twitter announced it would allow political advertising on its feed after a nearly four-year ban, on Wednesday.
Then there are the cost-cutting measures. Musk clearly has reduced employee benefits and even supposedly shortened on the lease of Twitter’s California headquarters. This week’s layoffs are at least the fourth round of job cuts since early November and at least the third since mid-December. Shortly before the takeover of Twitter and his appointment as CEO Elon Musk According to reports, investors said He planned to cut the company’s workforce by about 75%. Although he later denied this planit has come true.
According to this, at least three-quarters of the formerly around 7,000 Twitter full-time employees no longer work in the company an analysis by TechCrunch. And in late December 2022, a source close to the matter told Gizmodo that about 7,500 employees had been reduced to about 1,750. The same source also noted that the number of contractors had also been drastically reduced, from about 5,000 to about 1,000.
The rapid cuts and layoffs have already led to this at least three complain against Musk and the company, all of gender and allegations Disability Discrimination to a failure to comply with California labor laws. And Twitter’s legal woes are probably just beginning.
More than 3,000 employees were cut in the first round of the company’s mass layoffs on November 4. Under federal and California state law, these workers should have continued to receive wages for a 60-day period ending Wednesday. And beyond that period, laid-off employees should have been offered severance agreements and information on continued medical care. In response to criticism of the November layoff, Musk tweeted that each cut was “offered 3 months’ compensation”. However, staff say that didn’t happen.
Former employees have not received any details about the additional severance pay or COBRA health insurance after two months, it is said a Thursday report attributed to three laid-off workers by Bloomberg News. Former Twitter employees like Sam Stryker also used the platform to voice their experiences.
However, after media attention and complaints from former employees, Twitter is finally set to distribute severance agreements today a report by fortune. The draft contract reportedly offers an additional 30 days of severance pay (on top of the 60 days of continued wages the employees should have received). Former Twitter employees who sign the agreement would also waive their right to participate in any of the three pending lawsuits against the company, according to Fortune. The draft contract also includes a fairly standard non-disclosure clause.
Gizmodo would contact Twitter for a response to the legal allegations and more information on the situation of the termination agreement, but the company no longer has a public relations department and hasn’t responded to any of Gizmodo’s inquiries since Musk’s acquisition.
https://gizmodo.com/elon-cuts-costs-by-laying-off-the-people-who-make-money-1849955413 Elon Musk Lays off Even More Twitter Employees