Elon Musk to fire 1,000 Twitter staff, 5x revenue, 69m pay $3 a month

Posted 52 days ago

From WWW.DAILYMAIL.CO.UK

Elon Musk is planning to fire 1,000 staffers at Twitter as soon as his purchase of the social media platform is complete.

It's believed he will fire many of the firm's woke staff following the transfer of ownership which will take around six months, after which Musk is likely to wield the ax.

But then within the next three years, Musk anticipates making thousands of new hires, swelling the ranks to around 11,000 employees, up from 7,500 currently.

Much of the new talent is likely to be in the field of engineering.

Numbers at the company would fluctuate rising to 9,225 employees this year before falling to 8,332 in 2023. Then adding a further 2,700 workers by 2025.

Most of the jobs being shelved would occur during the takeover period, according to a pitch deck Musk presented this week to investors and seen by the New York Times

On a company level, Musk has previously floated the idea of closing down the San Francisco headquarters in order to save money and that board members may also not receive a salary, shaving off another $3 million in expenses.

The changes Musk makes are part of his plan to increase Twitter's annual revenue by five times current levels to $26.4 billion by 2028, up from $5 billion last year.

Advertising on the platform is set to fall to 45% of total revenue under Musk, down from about 90% in 2020.

By 2028, he plans for ads to generate $12 billion in revenue in 2028, while subscriptions are expected to pull in another $10 billion, according to the report.

Musk is said to favor a subscription-based model over advertiser funding, as it would make Twitter less beholden to advertiser pressure. He has even suggested users could pay with cryptocurrency, including joke currency Dogecoin which Musk has long had an affection for.

Other revenue would come from businesses such as data licensing.

Musk has also tweeted about potentially monetizing tweets, although he has not provided specific details.

Musk also plans to see Twitter's cash flow rise to $3.2 billion in 2025 and $9.4 billion in 2028.

Twitter's cash flow with be increased by taking on $13 billion of debt as part of Musk's buyout of the company.

However he plans to pay down the debt and increase the company's cash's flow.

Last month, Musk started a poll on his Twitter account - which has more than 81 million followers - asking whether the firm's San Francisco headquarters should be converted to a homeless shelter as 'no-one shows up (to work there)'.

The poll got more 300,000 votes in an hour, with 90% answering yes.

It comes weeks after Twitter brass - who offered staffers the option of working from home 'forever' during the pandemic - reopened its offices March 15, with remote work remaining an option for staffers.

Musk clinched a deal in April to buy Twitter for $44 billion in cash, in a move that will shift control of the social media platform populated by millions of users and global leaders to the Tesla chief.

The billionaire has promised to revitalize the company and expand the number of users by cracking down on spam bots and reducing the amount of moderation to facilitate more 'free speech'.

After the closure of the deal, Musk is expected to become Twitter's temporary CEO it was revealed on Thursday.

Among his other goals, Musk expects the social media company to bring in $15 million from a payments business in 2023 that will grow to about $1.3 billion by 2028.

As one of the founders of PayPal, Musk is familiar with the world of digital payments.

Twitter's payments business today, which includes tipping and shopping, is negligible.

It's believed Musk may also want to introduce payment abilities to Twitter.

Musk anticipates he can increase Twitter's average revenue per user to $30.22 in 2028 from $24.83 last year, it added.

Revenue from Twitter Blue, the company's premium subscription service launched last year, is expected to have 69 million users by 2025.

Users currently pay $3 a month to customize their experience on the app.

Musk hopes that plans to boost Twitter’s user numbers will also see more taking out subscriptions to Twitter Blue.

Musk, in a now deleted tweet last month, suggested a raft of changes to the social media giant's Twitter Blue premium subscription service, including slashing its price.

Other mooted chang... (Read more)