Elon Musk reportedly plans to cut 75% of Twitter’s workforce

Elon Musk, who is the owner of Tesla and remains in talks about buying Twitter, has reportedly said that he will purge Twitter’s workforce should he complete the takeover.

According to obtained documents and interviews by The Washington Post, Musk plans to release approximately 75% of Twitter’s 7,500 workforce.

Musk has recently hinted about potential layoffs in the past, but he never publicly released a ballpark figure.

“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,” Wedbush analyst Dan Ives told the Associated Press. “That said, you can’t cut your way to growth.”

Ives said that a staff cut of this size could set Twitter back years.

The Washington Post discovered that even if the sale doesn’t go through, layoffs are inevitable. Twitter’s current management have already planned to cut the wage bill by about $800 million by next year. This would mean a quarter of Twitter’s current staff would lose their job.

Musk’s deal to buy Twitter for $44 billion ($54.20 per share) is expected close by next Friday after a legal wrangle with Twitter which has gone on for months.

In the event that the deal doesn’t go through, Twitter’s litigation case against Musk will commence in November.