According to an email from the company, Musk will begin laying off employees on Friday, a little over a week after completing his blockbuster acquisition.
According to a copy of the email seen by The New York Times, the layoffs were communicated to employees in the email. The workers were told not to go to the offices on Friday as the cuts continued. The message came from a generic address and did not specify the number of layoffs.
The email said that they would be going through a process of reducing their global work force. This action is necessary to ensure the company's success moving forward, but we are aware that this will impact a number of individuals who have made valuable contributions to the company.
According to previous internal messages and an investor, about half of the company's workers were likely to lose their jobs. On Thursday evening, when the email arrived in employee inboxes, workers posted heart and salutes in the chat service.
The CEO and other top managers were fired immediately after Mr. Musk completed his purchase of the company. Managers were asked to draw up lists of high and low-performing employees, likely with an eye toward job cuts, as more executives resigned or were let go. More than 50 engineers and employees from Mr. Musk's other companies were brought in to review the layoffs of workers on the social platform.
The world's richest man is under pressure to make money from his social networking site. The company was taken private in a deal that was the largest of its kind. The billionaire is responsible for paying $1 billion a year in interest on the $13 billion in debt he loaded for the acquisition. The cash flow of the company is not strong. Mr. Musk might be able to cut costs so the company is less expensive to run.
Requests for comment from Mr. Musk and his company were not responded to.
The total number of layoffs is not likely to be the largest in the technology industry. HP reduced its workforce by 7.5 percent in 2008. About 30% of its work force was cut.
The deal was a big one. Musk made an offer worth $44 billion for the social media platform, saying he wanted to turn it into a private company and allow people to speak more freely. The battle that followed lasted months.
There was a move. The price Mr. Musk agreed to pay for the company in April was proposed on October 4. The purchase of the company was completed on October 27th.
Tech companies have cut jobs in the past. About 650 of the company's 5,000 employees will be laid off. The company said it would cut 14 percent of its work force.
The founder of Accountable Tech said the layoffs were an arbitrary purge just days before the election.
Even though Mr. Musk seems to have a basic grasp of the business, there is no visionary or innovative way to fire workers by email.
It was not clear if Mr. Musk had given advance notice of mass layoffs. A spokesman for the Employment Development Department in California said on Thursday that it had not received any notices from the social networking site.
Mr. Musk agreed to maintain the same benefits and compensation for one year. According to an internal benefits summary seen by The Times, at least two months' salary and the cash value of equity are typically paid to workers when they're laid off.
There were rumors that the company would be laying off employees. 3,738 people could be laid off according to a message that was sent to employees on Wednesday. According to a copy seen by The Times, the message said that changes could be made to the list.
Some employees gave out a " Layoff Guide" with tips on employment rights. A worker created software to help others. He stated that he was fired.
Workers received other signals that their workplace was changing. Two people with knowledge of the matter said that the "days of rest" were removed from the calendar. According to internal chats seen by The Times, some employees noticed that the employee directory had been taken offline.
A reference to a massacre scene in a TV show was made by an employee on a messaging service. The email was sent nine minutes after it was sent. The message said that if employees kept their jobs, they would be notified on their personal accounts.
Some employees at the headquarters in San Francisco were still wearing their corporate badges and milling about in the lobby. Some of them had drinks in hand from a bar attached to the office.
A woman is in a fetal position after an email hits. The latest time that layoff notifications were set to arrive was 8:59 am.
Those who are laid off will not be allowed to take items from the company. All badges will be suspended and our offices will be temporarily closed in order to make sure the safety of our employees and our systems.
It's likely that many employees will find out about their jobs from their homes.
Whether or not you are impacted, the email said, this is an incredibly challenging experience. We would like to thank you for your patience as we move through this process.
Ryan Mac was one of the contributors.
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