A week after it was acquired by billionaire Elon Musk, the online service Twitter began firing employees worldwide. According to US media, about half of the 7,500 employees will lose their jobs. Other companies announced they would freeze their advertising budgets on Twitter – including Volkswagen. The new owner Musk is furious.
Musk blamed “activist groups” that pressure advertisers. Nothing has changed in its handling of controversial content and every effort has been made to satisfy these activists, Musk wrote on Twitter on Friday. “They are trying to destroy free speech in America,” he claimed, without naming the groups.
On Friday, the VW group joined other major companies in suspending their ads on Twitter. General Motors stopped advertising on the platform last week. The pharmaceutical company Pfizer and the food giants Mondelez and General Mills are said to have taken similar steps.
Large advertising groups also keep their distance
Possibly even more threatening to Twitter’s advertising business, which accounts for about 90 percent of sales: the large international ad groups are also keeping their distance. Industry giant IPG, which manages billions in advertising budgets for companies like Coca-Cola, American Express, Levi Strauss and Spotify, is said to have advised customers to stop advertising on Twitter just days after its acquisition of Musk.
A permanent withdrawal from major advertisers would be a problem for Twitter and Musk. The service recently wrote red numbers. Musk also took out loans of about $13 billion before the acquisition — and media reports say it takes more money to maintain them than the Twitter business generates in free money. Shrinking revenues, in particular, would be inconvenient.
Open letter should reassure advertisers
Musk expressed his concern with constant criticism that Twitter restricts free speech too much. In an open letter to advertisers last week, he promised that not everyone would be allowed to express everything on Twitter without consequences. Then over the weekend himself, he posted a link to an unsubstantiated conspiracy theory about the attack on Paul Pelosi, the husband of House Speaker Nancy Pelosi.
According to an email sent to the company Thursday, employees will be told whether or not they should stay with the company at the start of their shift on Friday in California. “In an effort to put Twitter on a healthy path, we will go through the difficult process of downsizing,” the email reads. This will “meet a large number of people who have made valuable contributions to Twitter”, but is “unfortunately necessary to ensure the company’s future success”.
Twitter offices remained closed on Friday
Employees shouldn’t even have to show up at the office on Fridays. “Our offices will be temporarily closed”, access is not possible. Anyone already on their way to the office “must turn around and go home”.
The announcement comes as no surprise to employees. Musk took over Twitter in late October after months of arguing over $44 billion (about $44 billion) and immediately fired the head of the SMS service, Parag Agrawal, and other executives. Shortly before the acquisition, the Washington Post quoted Musk as saying he wanted to reduce the number of employees to 2,000.
Source: Krone
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
