Conflicting reports on layoffs at Twitter

Conflicting reports on layoffs at Twitter

San Francisco,10/21/2022

Shares of Twitter fell as much as 8% in premarket trading Friday after reports of impending layoffs and a national security review of Elon Musk’s purchase of the social media company.

U.S. government officials are considering a CFIUS (Committee on Foreign Investment in the United States) review of some Musk ventures as potential national security risks, including the Twitter acquisition. According to a Washington Post report, Musk could lay off 75% of Twitter’s workforce once the acquisition is complete.

Yesterday, Bloomberg reported that Biden administration officials are in early discussions about national security reviews of Musk’s ventures. Officials are concerned about Musk’s plans to buy Twitter with foreign investors, adding to whether his recent threat to shut down Starlink satellite service in Ukraine is due to bad humor or if he means it. The peace proposals he has made will also be an issue. A spokesperson for the National Security Council told Axios that „we are not aware of any such discussions.“

Meanwhile, Musk has told investors that he plans to lay off 75% of Twitter’s 7,500 employees after the acquisition closes. By comparison, Twitter planned layoffs of about 25% before the acquisition. The $44 billion acquisition of Twitter is expected to close in a week today (Oct. 21, 2022).