From a people-power perspective, Twitter is definitely a shell of what it used to be. Since Elon Musk took over the social media platform in late October 2022, the company has lost more than three-quarters of its employees through layoffs and voluntary departures. The cuts continued on Wednesday.
According to information, the company has cut about 40 additional jobs in the data science and engineering sectors report From information. A source close to the matter also confirmed the layoffs to Gizmodo on Wednesday, noting that the product’s software engineering, monetization and ad forecasting teams were the most affected.
The ad prediction team is tasked with using machine-based technology to determine the best way to target ads to Twitter users and develop ad algorithms. Without this engineering expertise, Twitter’s ability to optimize its ads and the revenue that accompanies it could be at risk, The Information reported.
And ads are now Twitter fought in his Musk era. Interest in paying for advertising space on the platform has decreased since October. High-profile companies such as General Motors and United Airlines have announced breaks on Twitter ads amid concerns about the platform’s moderation. Overall, the site’s US ad revenue fell 80% from internal expectations for the time of year. December 2022 report From the New York Times.
In response, the company’s desperation begins to show. In a move that was at least partly a financial decision, Twitter announced it would allow political ads In his feed on Wednesday after nearly four years of ban.
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Then there are the cost-cutting measures. Musk has a significant amount reducing employee benefits and even allegedly kidnapped Renting Twitter’s headquarters in California. This week’s layoffs are at least the fourth round of layoffs since early November and at least the third round since mid-December. Not long before it acquired Twitter and became its CEO, Elon Musk reported to investors he planned to cut the company’s workforce by about 75%. Later though rejected this planconcluded.
At least three-quarters of Twitter’s former ~7,000 full-time employees no longer work for the company. analysis From Tech Crunch. And in late December 2022, a source close to the matter told Gizmodo that roughly 7,500 employees were cut to 1,750. The same source also noted that the number of contractors has also been drastically reduced, from about 5,000 to 1,000.
Rapid layoffs and layoffs have already led to this at least three claims She made allegations against Musk and company about everything from her gender disability discrimination Failure to comply with California labor laws. And Twitter’s legal trouble is likely just getting started.
On November 4, more than 3,000 workers were laid off in the first round of the company’s massive layoffs. Under federal and California state law, those workers were required to continue receiving pay during the 60-day period that ended Wednesday. And employees who were terminated after that period had to be notified of their severance agreements and continued health insurance. In November, Musk responded to criticism of the firing he tweeted anyone cut was “offered 3 months severance”. But the workers say that is not happening.
After two months, former employees received no information regarding additional severance or COBRA health coverage. Thursday’s report It was attributed to three fired employees from Bloomberg News. Former Twitter employees like Sam Stryker have also taken to the platform to voice their experiences.
However, after media attention and complaints from former employees, Twitter is finally set to roll out severance agreements today. report From Fortune. The draft contract reportedly offers an additional 30 days of severance pay (on top of the 60 days the staff would have received). Former Twitter employees who signed the deal will also waive their right to participate in three ongoing lawsuits against the company, Fortune reported. The draft contract then included a relatively standard non-disclosure clause.
Gizmodo has reached out to Twitter for more information on the status of the legal claims and severance agreement, but the company no more public relations department, and has not responded to any inquiries from Gizmodo since Musk took over.