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| Twitter tries to allay employee fears before Musk becomes their manager |
Twitter recently tried to reassure employees about their hiring and compensation before Elon Musk officially became owned by the company, which could have laid off three-quarters of its workforce.
Musk's $44 billion takeover of Twitter stunned the company's employees months ago, after the world's richest man made sensational allegations about his plans to change the service, then tried to get out of business, giving a threatening reprieve. That won't be the case next Friday, adding to concerns within the company.
On Thursday, The Washington Post reported that Musk plans to cut Twitter's workforce by 75% to about 2,000 employees over the next few months, sparking employee concerns.
Workers are also concerned about how their wages will change if the owner turns the company from a public company to a private one, according to the New York Times, citing five employees.
Twitter is trying to allay some fears
Today, Twitter tried to allay some of these concerns. In a note to employees after the layoff report was released, General Counsel Sean Edgett said he did not expect layoffs. "We don't have any confirmation of the buyer's plans after closing and advise against following up on any rumors or leaked documents, but are waiting directly for us and the facts of the buyer," he explains.
The common belief is that whatever companies do to reassure employees may not be enough. Once Musk, a Mercury contractor, closes his takeover deal, he can do whatever he wants with the company. He said he was planning big changes.
Among them, Musk has previously said he wants more freedom of speech on the platform and will allow former President Donald Trump, who has been banned from serving, to return to Twitter. Musk, who has been an outspoken critic of the company's leadership, said he plans to add more followers on Twitter and remove some features because they will attract more users to the service.
Despite the volatility of Musk's testimony, the deal appears to be paying off so far. Even the New York Times quoted a person familiar with the matter as saying that the investment bank that pledged to Musk's $12.5 billion acquisition of Twitter was still working to finalize those pledges by October 28. The sources said that Musk's advisors are also sharing their financial analysis of the company with investors.
Musk's intentions on Twitter
After the deal, Musk is expected to run Twitter on a tight budget, especially since the billionaire, who also oversees electric car maker Tesla and space rocket company SpaceX, has borrowed more than $12 billion to fund the acquisition. Which gets him into trouble. bind, bind. Pay exorbitant fees. Additionally, investors who have contributed more than $7 billion can look forward to a final return.
Musk, who paid the company $54.20 at $54.20 per share, said he thinks he's paying too much for the company, whose shares have plummeted in recent months. "It's clear that I and other investors are paying a lot for Twitter right now," he said on a Tesla earnings call on Wednesday.
Five employees said workers are also concerned that Musk will continue to compensate them as planned. Under the terms of the deal, Musk agreed to continue paying Twitter employees and benefits for a year. But their return on equity will change.
Twitter employees currently receive regular grants in exchange for company stock, but those grants must be exchanged for cash as Musk plans to privatize the company. Shares already purchased by employees will be paid at the price Musk agreed to buy.
Some employees said they fear Musk will not be able to stick to the deal because he has repeatedly changed his mind about the deal.
Twitter CEO Parag Agrawal will receive more than $60 million in cash and stock if Musk fires him. Other executives are said to earn more than $20 million. When employees were asked about executive pay, management responded that executive pay is common in acquisitions.