Elon Musk, the CEO of Tesla, and SpaceX, has said that, after acquiring Twitter, he will reduce its workforce by 75%, according to documents and interviews obtained by The Washington Post.
According to the Post, Musk informed potential investors in his offer to purchase the social networking platform that he intends to reduce the workforce at the company from 7,500 to approximately 2,000.
The current management of Twitter also has big personnel cuts planned. The Washington Post reported, Twitter was preparing a $800 million salary cut that would result in over 25% of the company’s employees leaving by the end of 2023, as well as significant infrastructure cuts, before Musk launched his takeover attempt.
Additional news about Musk’s Twitter purchase involve billionaire Ken Griffin. According to a person familiar with the situation, billionaire Ken Griffin has vowed to support Elon Musk’s attempt to acquire Twitter Inc., even if his pledge was for less than $20 million. Griffin, whose estimated net worth is $29.2 billion, provided funding, although Musk had not made this information public. The founder of Citadel was listed by Twitter as an “actual or possible” co-investor in the deal’s equity financing.
In a May filing, Musk revealed that he had secured $7.1 billion in finance commitments from investors to assist him purchase the social networking site. These investments included $1 billion from Larry Ellison, $700 million from Sequoia Capital, and $500 million from Binance.
Since beginning his $44 billion buyout of Twitter in April, Tesla Inc.’s CEO has made nearly $15 billion in cash by selling off some of his company’s stock. He might need to sell further Tesla shares, depending on how many other outside investors have supported his offer.
The Washington Post first covered Griffin’s support. According to the newspaper, the deal was not supported by Reid Hoffman, the creator of LinkedIn Corp., and billionaire Peter Thiel’s Founders Fund.
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