Musk Plans To Layoff 50% Of Twitter’s Workforce Forward Of Verification Price Roll Out Subsequent Week, Studies Say


Topline

Twitter’s new proprietor Elon Musk plans to layoff practically half of Twitter’s workforce by the top of this week in an effort to chop prices, in accordance with a number of experiences, because the billionaire additionally seeks to spice up the social media platform’s capacity to monetize its consumer base by charging for verification badges as early as subsequent week.

Key Info

Musk reportedly plans to put off round 3,700 of Twitter’s 7,500 employees by Friday, varied retailers together with Bloomberg and the Monetary Occasions reported, citing sources on the firm.

Remaining staffers will likely be anticipated to return to in-office work beginning Monday as Musk additionally plans to scrap Twitter’s distant work coverage which allowed staff to work from wherever.

In response to Bloomberg, the precise extent and phrases of the layoffs are nonetheless not closing however one of many plans includes providing 60 days price of severance pay to the laid off employees.

In a separate report citing sources, Bloomberg reported that Twitter might roll out its up to date $8-per-month subscription plan—which incorporates the verification badge as a perk—as early as Monday.

The Bloomberg report additionally notes that Twitter’s edit function, which is presently paywalled behind a Twitter Blue subscription, will likely be made free to all customers.

Chief Critic

Musk’s plan to cost $8 a month for a verification badge has drawn criticism from a number of quarters together with political leaders. On Wednesday evening, Rep. Alexandria Ocasio-Cortez (D-N.Y.) tweeted: “One man’s marketing strategy for a $44 billion over-leveraged buy is seemingly to run round and individually ask individuals for $8. Do not forget that subsequent time you query your self or your {qualifications}.”

Key Background

The deliberate layoffs and choice to cost a month-to-month price for verification badges comes as Twitter faces potential backlash from advertisers involved about looser content material moderation beneath Musk’s management. Musk, who fashions himself as a “free speech absolutist” has additionally expressed his want to wean Twitter off its dependence on advertisements which make up 90% of its whole income. Regardless of this, Musk has solely vaguely outlined different perks for the revamped Twitter Blue subscription exterior of a verified badge. On Tuesday, he stated subscribers will see fewer advertisements, have the flexibility to share longer movies or audio clips and obtain “precedence in replies, mentions & search.” As he tries to construct alternate income sources, the billionaire has additionally tried to woo advertisers to stay on the platform by promising he is not going to permit it to grow to be a “free-for-all hellscape.” Promoting giants, nevertheless, stay skeptical and are reportedly urging manufacturers to pause advert spends on Twitter till content material moderation considerations are addressed. Musk on Wednesday tweeted out a ballot from his account asking if advertisers ought to help “freedom of speech or Political ‘correctness,’” implying that firms pulling advertisements from Twitter over content material moderation considerations are against free speech or are solely doing so due to political correctness.

Additional Studying

Musk Plans to Remove Half of Twitter Jobs to Minimize Prices (Bloomberg)

Elon Musk plans to chop as much as half of Twitter workforce (Monetary Occasions)

Elon Musk Goals to Begin Charging for Twitter Verification Subsequent Week (Bloomberg)





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