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$4m per day loss caused sack, Elon Musk says, as advertisers boycott Twitter

  • Business

Elon Musk has stated that Twitter losing $4 million per day led to the sack of some workers at the company, following his $44 billion acquisition.

Musk explained that the company had no choice but to cut workforce in a bid to protect Twitter’s earnings at a period the social networking site was losing advertisers.

Already, GM and General Mills Inc have suspended placing ads on Twitter, and Volkswagen Group, owner of VW, Seat, Cupra, Audi, Lamborghini, Bentley, Ducati and Porsche brands, has joined the list.

Musk had complained of Twitter’s ads revenue dropping, “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. Extremely messed up! They’re trying to destroy free speech in America.”

Read also:Twitter to charge verified accounts as Elon Musk reviews platform’s features

With ads earnings tanking, which account for largely Twitter revenue, the number of persons reportedly facing sack are over 3,700 workers at the firm.

On Saturday, Musk wrote on Twitter that the sacked workers were given three months severance pay, which is 50 per cent more than legally required by law.

“Regarding Twitter’s reduction in force, unfortunately, there is no choice when the company is losing over $4M/day. Everyone exited was offered 3 months of severance, which is 50% more than legally required.”

Source: Ripples Nigeria