Twitter Stocks Taking Massive Hits! Elon’s Layoff Plans Might be his Doom
Elon’s layoff plans might lead to Twitter stocks taking massive hits! Explore here
Employees at Twitter are circulating an open letter protesting Elon Musk’s plan to fire as much as 75% of the company’s workforce, as the deadline for him to complete his US$44 billion acquisition of the company looms, TIME has learned. Musk must complete the acquisition by Friday or face the resumption of a lawsuit in a Delaware court. Does this mean Twitter stocks will take massive hits? Let’s find out here.
Elon Musk told prospective funders of his Twitter acquisition that he planned to replace or eradicate the jobs of nearly 75% of Twitter’s staff, reducing headcount from 7,500 to just 2,000, the Washington Post reported last week. Musk has previously claimed that the social media company is bloated, and has also said its workforce has a “strong left-wing bias.”
TIME reviewed a draft of the open letter circulating among Twitter employees on Monday. “Elon Musk’s plan to lay off 75% of Twitter workers will hurt Twitter’s ability to serve the public conversation,” said the draft of the letter, which has not yet been published. “A threat of this magnitude is reckless, undermines our users’ and customers’ trust in our platform, and is a transparent act of worker intimidation.”
The letter demands that Musk commits to preserving Twitter’s current headcount if his takeover of the company goes through. It also demands he does not discriminate against employees based on their political beliefs and that he commits to “fair” severance policies and more communication about working conditions. “We demand to be treated with dignity, and to not be treated as mere pawns in a game played by billionaires,” the list of demands says.
It was unclear how many Twitter employees had signed the letter at the time of publication. “Signatures will not be made public unless we have critical mass,” said a note sent to prospective signatories.
Last week, Bloomberg reported that Twitter and Musk are drawing up paperwork to close the deal ahead of the Friday deadline, citing multiple sources familiar with the matter. When Musk initially filed to end the court case and buy the company at the original price, Twitter appeared wary of the billionaire’s intentions. The company has said it will not close the deal until Musk can prove he has funding in place.
Musk’s original financing package for Twitter included US$21 billion in cash and US$12.5 billion of margin loans secured against his 16% stake in Tesla, as well as US$13 billion in loans from several banks. But, Insider’s Kali Hay reported that at least one investor was looking to pull out of the deal.
The banks, including Morgan Stanley, are finalizing funding, Bloomberg reported on Thursday. The billionaire is still on the hook for another US$32 billion, but is likely to sell anywhere from US$5 billion to US$10 billion in Tesla stock to help finance the deal, Wedbush tech analyst Dan Ives said in a note on Friday.
If Musk goes through with the deal this week, it’s still possible the saga could continue even after an agreement is reached.
The post Twitter Stocks Taking Massive Hits! Elon’s Layoff Plans Might be his Doom appeared first on Analytics Insight.
Elon’s layoff plans might lead to Twitter stocks taking massive hits! Explore here
Employees at Twitter are circulating an open letter protesting Elon Musk’s plan to fire as much as 75% of the company’s workforce, as the deadline for him to complete his US$44 billion acquisition of the company looms, TIME has learned. Musk must complete the acquisition by Friday or face the resumption of a lawsuit in a Delaware court. Does this mean Twitter stocks will take massive hits? Let’s find out here.
Elon Musk told prospective funders of his Twitter acquisition that he planned to replace or eradicate the jobs of nearly 75% of Twitter’s staff, reducing headcount from 7,500 to just 2,000, the Washington Post reported last week. Musk has previously claimed that the social media company is bloated, and has also said its workforce has a “strong left-wing bias.”
TIME reviewed a draft of the open letter circulating among Twitter employees on Monday. “Elon Musk’s plan to lay off 75% of Twitter workers will hurt Twitter’s ability to serve the public conversation,” said the draft of the letter, which has not yet been published. “A threat of this magnitude is reckless, undermines our users’ and customers’ trust in our platform, and is a transparent act of worker intimidation.”
The letter demands that Musk commits to preserving Twitter’s current headcount if his takeover of the company goes through. It also demands he does not discriminate against employees based on their political beliefs and that he commits to “fair” severance policies and more communication about working conditions. “We demand to be treated with dignity, and to not be treated as mere pawns in a game played by billionaires,” the list of demands says.
It was unclear how many Twitter employees had signed the letter at the time of publication. “Signatures will not be made public unless we have critical mass,” said a note sent to prospective signatories.
Last week, Bloomberg reported that Twitter and Musk are drawing up paperwork to close the deal ahead of the Friday deadline, citing multiple sources familiar with the matter. When Musk initially filed to end the court case and buy the company at the original price, Twitter appeared wary of the billionaire’s intentions. The company has said it will not close the deal until Musk can prove he has funding in place.
Musk’s original financing package for Twitter included US$21 billion in cash and US$12.5 billion of margin loans secured against his 16% stake in Tesla, as well as US$13 billion in loans from several banks. But, Insider’s Kali Hay reported that at least one investor was looking to pull out of the deal.
The banks, including Morgan Stanley, are finalizing funding, Bloomberg reported on Thursday. The billionaire is still on the hook for another US$32 billion, but is likely to sell anywhere from US$5 billion to US$10 billion in Tesla stock to help finance the deal, Wedbush tech analyst Dan Ives said in a note on Friday.
If Musk goes through with the deal this week, it’s still possible the saga could continue even after an agreement is reached.
The post Twitter Stocks Taking Massive Hits! Elon’s Layoff Plans Might be his Doom appeared first on Analytics Insight.
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