Twitter losing over $4 million a day: Elon Musk says sacked employees got severance pay more than legally required

© Provided by Times Now twitter losing over $4 million a day: elon musk says sacked employees got severance pay more than legally required

New Delhi: World’s richest person and now the new owner of Twitter Elon Musk on Saturday opened up about the decision to lay off about 50 per cent of the company’s workforce. Even as Twitter's former staff filed a class-action lawsuit against the microblogging site on Thursday, Musk said “there is no choice”.

The billionaire claimed that the company is running at losses as several advertisers have suspended ad spending on Twitter. Musk shifted the blame for losses on to a coalition of civil rights groups as they have been forcing the platform’s top advertisers.

“Twitter has had a massive drop in revenue, due to activist groups pressuring advertisers, even though nothing has changed with content moderation and we did everything we could to appease the activists," the new Twitter boss said on Friday night.

Elon Musk on Twitter layoffs

Now, in his first tweet after firing nearly almost half of 7,500 of its staff, the tech mogul said he had no other choice because the social media site was losing more than $4 million per day. “Regarding Twitter’s reduction in force, unfortunately there is no choice when the company is losing over $4M/day," the world’s richest person wrote.

He further added that everyone who has been sacked was offered 3 months of severance, which is 50 per cent more than legally required.

Twitter staff working in engineering, communications, product, content curation, and machine learning ethics were among those impacted by the firing.

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Additionally, in India, Twitter has fired the majority of its over 200 employees as part of mass layoffs across the globe. ET reported citing sources that the layoffs are across sales and marketing, and communications teams.

Twitter’s India layoffs are part of global job cut as its new owner wants to attain economies of scale and make the $44 billion acquisition viable. Musk began his innings at Twitter last week as he fired the CEO Parag Agrawal as well as the CFO and some other top executives. This was followed by an exodus of top management. Musk has now started a massive exercise to downsize the company's global workforce.