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Twitter (NYSE:TWTR) has told employees there are no plans for mass layoffs, Bloomberg reported, despite media reports indicating Elon Musk could remove the majority of the company’s workforce once he takes control.
According to Bloomberg, which cited a memo from Twitter (TWTR) General Counsel Sean Edgett, the social network told its employees that they would encounter “tons of public rumors and speculation” as the deal gets closer to being finalized, but added that they did not have any confirmation that mass layoffs would be coming.
“We do not have any confirmation of the buyer’s plans following close and recommend not following rumors or leaked documents but rather wait for facts from us and the buyer directly,” Edgett wrote.
Twitter (TWTR) did not immediately respond to a request for comment from Seeking Alpha.
On Thursday, a media report indicated that Musk was looking to let go up to 75% of the company’s 7,500 employees, bring the level down much closer to 2,000.
Musk addressed the purchase on Tesla’s (NASDAQ:TSLA) most recent earnings call, touting its long-term prospects, but adding that he and the other investors are paying too much for the company.
“I think it’s an asset that has sort of languished for a long time, but it has incredible potential,” Musk said. “Although obviously myself and the other investors are obviously overpaying for Twitter, the long term potential for Twitter in my view is in an order of magnitude greater than its current value.”
Twitter (TWTR) shares sank more than 6% to $49.15 in premarket trading on reports the Biden Administration is looking into whether some of Musk’s deals should be subject to national security reviews, including his planned purchase of Twitter (TWTR) and SpaceX’s Starlink satellite network.
Musk’s $44B acquisition of Twitter (TWTR) is expected to close by next Friday, according to recent reports, assuming no hiccups.
