Twitter CEO Elon Musk confirms that the social network company he bought for $44 billion last October is now valued at $20 billion. According to an email obtained by New York Times, the business tycoon told the employees on Friday that the app is now less than its original value, marking a significant drop since Musk’s acquisition.
The email contained several notices to Twitter employees, particularly a new stock compensation program. It also included a warning from the CEO that the company is still in an uncertain position, and, unsurprisingly, that the mass layoffs and cost-cutting methods were necessary to save the company from bankruptcy.
Twitter’s Value Continues To Decline Amid Elon Musk’s Company Overhaul
It is plain to see that Twitter’s value has drastically declined since Musk did a company overhaul and fired several employees from core departments. The billionaire also admitted in public that advertisers left the platform after he took the driver’s seat, and this has caused a tremendous loss in revenue.
Meanwhile, Musk stated in his email that employees, now less than two thousand, will receive stock in X Corporation, which is the holding company that the magnate used to purchase Twitter. According to Musk, this will be granted under the $20 billion assessment, and he hopes that the social networking app will still thrive and become worth $250 billion.
The company will permit its employees to sell their stocks every six months, a similar practice is done at Space X. According to Musk, the private stock will allow employees to earn “liquid stock, but without the stock price chaos and lawsuit burdens of a public company.”
Musk added in his email, “Twitter is being reshaped rapidly,” after he confessed that the company had been four months away from running out of money. The entrepreneur defended his actions and claimed that Twitter should be viewed as an ‘inverse start-up.’
Elon Musk Resorts To Desperate Measures, Disposes Luxury Items And Office Essentials To Cut Down Expenses
Elon Musk did a major revamp of the company’s workforce over the course of his present tenure. In a post from Daily Mail, the business mogul warned half of the social media’s staff in an email that they would be laid off, although many had no idea they were being terminated until they tried to log in on their company email and found out that their accounts have already been deleted.
Musk, on firing 3,700 employees, came to his defense and said:
“There is no choice when the company is losing over $4mn/day.”
The rest was forced to sign a pledge if they wanted to keep their jobs. According to the staff, the message reads: “If you are sure that you want to be part of the new Twitter, please click yes on the link below.”
Not only he fired employees, but Musk also got rid of several essentials in the office, such as the kitchen and online workstations. The items went on sale, such as a $20,000 espresso machine, a $10,000 vegetable dryer, and a $17,000 braising pan. The list also included chairs, tables, kegs, fridges, pizza ovens, a coffee maker, projectors, Mac desktops, stationary bikes, and desks.
Source: NY Times, Daily Mail
