Explorer

Elon Musk Orders Twitter To Pare Infrastructure Costs By $1 Billion: Report

Twitter is aiming to find between $1.5 million and $3 million a day in savings from servers and Cloud services, according to a report

In a bid to pare excess expenditure, Tesla CEO Elon Musk has directed Twitter Inc's teams to find up to $1 billion in annual infrastructure cost savings, citing two sources privy to the development news agency Reuters reported on Friday. According to the report, this move by Musk has raised concerns that Twitter could go down during high-traffic events like the US mid-term elections.

The micro-blogging company is aiming to find between $1.5 million and $3 million a day in savings from servers and Cloud services, said the Slack message, which referred to the project as "Deep Cuts Plan."

According to Reuters, Twitter is currently losing about $3 million a day "with all spending and revenue considered," according to an internal document reviewed by the news agency.

However, Twitter did not immediately respond to Reuter’s request for comment.

The steep infrastructure cuts could put the Twitter website and app at risk of going down during critical events when users are rushing to Twitter to consume and share information, such as during moments of crisis or major political events, the sources said.

The social media platform is exploring whether to cut extra server space that is kept to ensure Twitter can handle high traffic, one source said.

"(Musk) is willing to introduce that risk to meet these goals," the person said.

The second source described the proposed cuts as "delusional," adding that when user traffic kicks up, the service can fail "in spectacular ways."

Teams across Twitter are racing to present a plan to achieve the cost savings by a November 7 deadline, according to one of the sources and the Slack message. Some employees have been ordered to work in the office every day of the week to meet the deadline, the source said.

Cost cuts could also come from reduced spending on Google Cloud services, the source said.

Meanwhile, Musk is set to begin mass layoffs at Twitter on Friday that will cut down the company’s workforce. The staff was informed about the layoff through an official email, as reported by The Guardian, New York Times, and Washington Post.

View More
Advertisement
Advertisement
25°C
New Delhi
Rain: 100mm
Humidity: 97%
Wind: WNW 47km/h
See Today's Weather
powered by
Accu Weather
Advertisement

Top Headlines

ABP EXCLUSIVE: Can Uddhav Rejoin BJP Alliance? Fadnavis Opens Up On Ties With Ajit Pawar, Mahayuti CM Face & More
ABP EXCLUSIVE: Can Uddhav Rejoin BJP Alliance? Fadnavis Opens Up On Ties With Ajit, Mahayuti’s CM Face & More
Manipur: Internet Services Suspended Across 7 Districts, Curfew In Imphal West As State On Boil Again
Manipur: Internet Services Suspended Across 7 Districts, Curfew In Imphal West As State On Boil Again
ECI Seeks BJP, Congress Responses Over Complaints Against Remarks By PM Modi, Amit Shah, Rahul Gandhi
ECI Seeks BJP, Congress Responses Over Complaints Against Remarks By PM Modi, Amit Shah, Rahul
'Modi Has Lost His Memory': Rahul Gandhi's 'Joe Biden' Jibe At PM In Maharashtra's Amravati — WATCH
'Modi Has Lost His Memory': Rahul Gandhi's 'Joe Biden' Jibe At PM In Maharashtra — WATCH
Advertisement
ABP Premium

Videos

Jhansi Medical College Fire: Akhilesh Yadav Slams Yogi Govt, Demands Action as Tragic Fire Claims Lives of 10 NewbornsMaharashtra Elections 2024: Amit Shah Slams LoP Rahul Gandhi Ahead Of Polls | ABP NewsCM Yogi Announces Rs 5 Lakh Compensation for Jhansi Tragedy Victims' Families, Rs 50,000 for the InjuredDelhi Crime: Gunfire Erupts Again in Delhi, Criminals Open Fire in Gokulpuri Area

Photo Gallery

Embed widget