Elon Musk Plans to Lay Off 75% of Twitter Staff; Completion of Takeover Imminent

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Elon Musk is planning a mass layoff at Twitter following the completion of the deal to acquire the social media platform, according to reports. The tech billionaire's cost cutting plan will see a whopping 75 percent of Twitter workforce walking up the garden path, the Washington Post reported, citing sources.

However, Twitter human resources executives have reportedly said there is no massive layoff plan on the table.

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The Post reported that Musk told prospective investors that his plan would see Twitter paring down the staff costs significantly. Twitter at the moment has more than 7,500 employees worldwide.

Meanwhile, Musk's Twitter buy would be closed before October 28, with his team working to complete the deal before the court-sanctioned deadline. Bloomberg reported that Musk's lawyers are holding late stage talks with the bankers, led by Morgan Stanley. The paperwork is expected to be completed before October 28.

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It is not clear if Musk's layoff plans at Twitter is part of the cost-trimming measures currently under consideration by the current management. There were reports earlier that the Twitter management has been looking at cutting payroll costs by about $800 million by the end of next year. This process would have seen about a quarter of the Twitter employees leaving the company.

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Though there have been internal assurances that there won't be mass layoffs, the Post said that company documents showed serious plans to trim staff and reduce infrastructure costs.

Earlier this month, Elon Musk has dramatically changed the course of his Twitter deal saga, by announcing that he was willing to buy the social media giant at the previously agreed price of $44 billion.

Reports said Twitter acknowledged the move from Musk, putting the lid finally on the controversial takeover bid that was launched several months ago in April.

In a letter written by Musk's lawyers, the billionaire says he is willing to go ahead with the deal under which each share of Titter is valued at $54.20. He said the intention is to complete the transaction, pending receipt of the financing and a formal end of the legal fight.

Musk's offer came just days ahead of the lawsuit filed against him by the Twitter board was to go into trial. The case was filed after Musk sought to abandon his deal to acquire Twitter over what he says is a misrepresentation of fake accounts on the site.

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