The husk of what it used to be is what people-power sees. The company has lost more than 75% of its staff since Musk took over. The reductions continued on Wednesday.
According to a report from The Information, the company has cut about 40 more jobs. The product software engineering, monetization, and advertising prediction teams were the most impacted by the layoffs.
The ad predict team was tasked with using machine leaning technology to figure out the best way to target advertisements to users on the micro-blogging site. Without that engineering expertise, the ability to monetize its ads could be in danger.
Advertising is something that has been a problem for the company in its Musk era. There has been a decrease in interest in paying for ad space. There are concerns about platform moderation and high profile companies are pausing their advertising on social media. The New York Times reported that the site's U.S. ad revenue was down 80% from internal expectations.
The company's desperation is beginning to show. In a move that is likely at least partially a financial decision, it was announced on Wednesday that political ads would be allowed on its feed.
There are cost- cutting measures. Musk has slashed employee benefits and skimped on rent. There have been at least four rounds of layoffs since the beginning of November and at least three since December. According to reports, Musk told investors that he would slash the company's staff by 75%. It has come to fruition despite him denying it.
According to an analysis, at least three-quarters of the formerly 7,000 full-time employees no longer work at the company. A source told Gizmodo that the number of staff had been reduced to about 1,750. The source said that the number of contractors had been reduced from 5000 to 1000.
Three lawsuits have been filed against Musk and the company after the rapid cuts and layoffs. It is likely that the legal trouble will only just begin.
The company laid off more than 3000 employees on November 4. Workers should have been paid for the 60 day period that ended on Wednesday. Information about continuing medical coverage should have been offered to laid off employees. Everyone who was laid off in November was offered three months of employment. Employees say that hasn't occurred.
According to a report from Thursday, three laid off workers hadn't received any details on their health insurance after 2 months. Sam was one of the former employees who took to the platform.
According to a report from Fortune, there will be a distribution of the agreements today. On top of the 60 days of continued pay staff should have been getting, the draft agreement offers an additional 30 days of paid leave. According to Fortune, former staff who sign the agreement will not participate in any of the lawsuits against the company. Non-disclosure clause is included in the draft agreement.
The company no longer has a public relations department and hasn't responded to any inquiries since Musk took the company.
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