Twitter Inc (NYSE:TWTR) has told its staff that there are no plans for company-wide layoffs since it signed a deal to be acquired by billionaire Elon Musk, Reuters reported, after a media story suggested that Musk is considering massive layoffs at the company.
Twitter General Counsel Sean Edgett emailed employees on Thursday saying the company does not plan layoffs, according to the newswire citing a source who viewed the email.
The Washington Post reported earlier on Thursday that Musk told prospective investors in his deal to buy Twitter that he planned to get rid of nearly 75% of the company's 7,500 workers, citing interviews and documents.
READ: Elon Musk says he is excited by Twitter deal despite overpaying - Reuters
The job cuts are expected in the coming months, no matter who owns the company, according to the Washington Post report.
Twitter's current management planned to pare the company's payroll by about $800 million by the end of next year, a number that would mean the departure of nearly a quarter of the workforce, the report said.
Human resources staff at the social media company have told employees that they were not planning for mass layoffs, but documents showed extensive plans to push out staff and cut down on infrastructure costs were already in place before Musk offered to buy the company, the Washington Post report said.
Musk agreed to buy the social media giant in April for $54.20 per share (at the time the company traded at roughly $45 per share). He attempted to pull out of the deal in July (when the stock was trading around $37 per share), alleging that Twitter was concealing information about the number of fake accounts on its platform.
Twitter shareholders approved the $44 billion deal in September, and the matter appeared to be headed to court until Musk opted to proceed with his offer at the start of October rather than face legal challenges.
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