Elon Musk told prospective investors that he plans to fire 75% of Twitter's 7,500-strong workforce should he buy it, reports the Associated Press.
While job cuts have been expected regardless of the sale, the magnitude of Musk's planned cuts are far more extreme than anything Twitter had planned. Musk himself has alluded to the need to cull some of the company's staff in the past, but he hadn't given a specific number — at least not publicly. "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," said Wedbush analyst Dan Ives. "That said, you can't cut your way to growth."
Looks a lot like what private equity does to chain retailers and energy companies and whatnot when it hacks them up for parts. No growth, no product development, no future, just money extracted as ruthlessly as possible.
