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Elon Musk fired 80% of Twitter, and Silicon Valley adopted practice: Report

Livemint · 1y ago

Medial

Elon Musk's acquisition of Twitter for $44 billion in 2022 led to a drastic downsizing of the company. Musk sent in loyalists to evaluate employees and subsequently cut 6,000 workers, or 80% of the workforce. This move shocked the industry, and many departments, including diversity and inclusion and product and design teams, were heavily affected. Musk's intention was to rebuild the business with a clean slate, but the extensive cuts left gaps to fill and resulted in chaos. This downsizing approach set a new standard, and other Silicon Valley giants, such as Meta and Google, followed suit with their own layoffs. Despite the challenges, Twitter (now called X) has endured, albeit with a decreased valuation of $14 billion compared to the initial $44 billion. Investors are hoping to participate in Musk's future successful projects to recoup their losses from the Twitter acquisition.