Musk is said to be planning to gut the workforce at the micro-blogging site.
According to internal documents and interviews by The Washington Post, Musk told potential investors that he planned to eliminate 75% of the company's work force.
It is expected that the deal will close in good faith by next Friday.
The Post found that even if Musk doesn't buy the company, massive layoffs would still take place.
The Post said that at least a quarter of the company's workforce would have to leave if the current management had their way.
Insider could not independently verify the plans for Musk's layoffs.
Since the beginning of the year, no other tech company has laid off such a large percentage of its workforce.
According to experts who spoke to the Post, layoffs of this size could lead to more offensive content on the site.
The company was accused of negligent and reckless cybersecurity policies by a former head of security.