According to reports from Business Insider, Twitter Inc. plans to lay off more than 50 workers from its product division in the coming weeks. The layoffs may also affect other departments.
The layoffs come six weeks after Elon Musk reportedly told staff members that there would be no further reductions, claimed the report quoting two sources familiar with the company. The company has been taking measures to reduce expenses and is also auctioning surplus office items. There have also been reports claiming that Musk has not paid rent to the landlords of several Twitter offices.
Since Musk's takeover, there have been a number of changes in the product and organisation. The social media giant rolled out the Twitter-verified Blue Checkmark as a paid service instead of a free one, and he also laid off approximately 50 per cent of the company's staff, including its top leadership. With this latest round of layoffs, the headcount is expected to go below 2,000.
In early November 2022 the company had fired close to 3,700 employees in order to cut costs. Later on, more employees gave in their resignations. Further, the company was also accused of legal violations by some former employees, with claims including targeting women for layoffs and failing to pay the promised severance.
Twitter's falling revenue
Additionally, Twitter has also been facing issues with advertisers, as many backed out after Musk took over the microblogging site. According to a report by The Information, the company's revenue for the fourth quarter went down by nearly 35 per cent to $1.025 billion.
According to Musk, the previous leadership of Twitter spent money unscrupulously without a set plan. Other than layoffs and auctions, Musk has also given up office facilities. In India, Twitter gave up office facilities in Mumbai and Delhi as a measure to save taxes.
Complaints against Twitter
Three complaints have been filed with the US Labour Board, which claims that the workers were fired for criticising the company and other conduct that is protected by the federal labour law.
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