Shulou(Shulou.com)11/24 Report--

On the morning of January 19, Beijing time, it was reported that Twitter would cut further jobs, and the total number of Twitter employees was expected to fall to its lowest level in more than a decade, although about six weeks ago, Elon Musk (Elon Musk) told Twitter employees that there would be no more large-scale layoffs.

Another 50 employees in Twitter's products division will be laid off in the coming weeks, according to two people familiar with the matter. In addition, two weeks ago, dozens of employees in Twitter's advertising, trust and security, and commercialization departments were laid off. Offices in Singapore and Australia also laid off staff last week.

Twitter employees expect plans to close several international offices and some smaller offices in the United States to lead to more layoffs. If that is the case, the number of Twitter employees could soon fall to less than 2000. Twitter went public in 2013, when it had 2700 employees.

The reduction in the number of employees to less than 2000 also means that Mr Musk will cut more than 75 per cent of Twitter, far more than expected when he took over in October. His first round of layoffs involved about half of Twitter's employees. Later, Musk told employees in an email that they either agreed with his "hard core" vision or left, resulting in hundreds of other resignations. Several affected employees said that after that, some employees were accidentally fired, and the company gave little or no explanation for the reason.

Twitter has yet to respond to the latest news.

Mr Musk said a few weeks ago that there would be no "plan" for further job cuts. But many Twitter employees already believe that what Musk is saying on the surface can't be believed. Another person familiar with Twitter said: "Musk just said something that sounded appropriate at the time."

Recently, Musk has repeatedly bemoaned the state of Twitter's business, even comparing it to a plane about to crash in December. At the same time, he blamed the former leadership and lavish spending.

Under Musk's leadership for nearly three months, many changes have taken place on Twitter. Hundreds of advertisers fled Twitter, Musk laid off employees responsible for monitoring and deleting hate speech, restored accounts banned for inciting violence, and Musk himself made several political and misleading comments.

Twitter's business depends on advertising revenue. Mr Musk said in November that Twitter was "losing $4 million a day (currently about 27.08 million yuan)". But in the second quarter of last year, the last time Twitter reported results as a public company, the company lost about $3 million a day (currently about 20.31 million yuan). In the first quarter of last year, Twitter made a profit of $513 million (currently about 3.473 billion yuan).

Mr Musk has also taken many other steps to cut costs. He reduced the functionality of the platform and eliminated many of the benefits given to employees, such as reproductive health and office food. Some offices in San Francisco and New York have been converted into sleep chambers and showers to save on hotel costs. The reduction of cleaners and office maintenance staff has led to the deterioration of environmental hygiene, and there are even bugs in the office. Musk also decided on Christmas Eve to cut off a major data center in Sacramento in order to save costs. The operating costs of such data centers can run into millions of dollars a month.

Twitter's finances also seemed to take a hit in the fourth quarter. It was reported this week that Twitter revenue fell by about 35 per cent in the fourth quarter compared with the same period a year earlier, an advertising executive named Chris Riedy said at a staff meeting.

Twitter's revenue in the fourth quarter was $1.025 billion (currently about 6.939 billion yuan), meeting only 72 per cent of previous internal targets, according to materials presented to employees by Mr Riddy. He also said at the meeting that before Musk took over Twitter in October, the company expected revenue in the fourth quarter to reach 98% of its target.

On Tuesday, Twitter's one-day revenue fell 40% from the same period last year. If this trend continues, Twitter's first-quarter revenue could fall to about $720 million.

According to Ritty, Twitter hopes to generate $732 million in revenue in the first quarter of 2023. Musk's current goal is to stop further decline in advertising revenue. Since he took over Twitter, more than 500 top advertisers have left the platform.

Twitter has previously redesigned its paid blue v authentication service, resulting in many fake accounts on the platform. This may be one of the main factors affecting advertising revenue.

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