'No Confirmation': Twitter Dismisses Reports Of 75% Layoff By Elon Musk

In a memo written to employees, Twitter General Counsel Sean Edgett warned them against "tons of public rumors and speculation" as the deal draws to a close.

Twitter account displayed on a phone

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New Delhi: Twitter Inc tried to quell concerns of employees over reports of Tesla chief Elon Musk laying off the workforce as part of his takeover and clarified to employees that there haven't been plans for companywide layoffs since it signed a deal to be acquired by the billionaire.

In a memo written to employees, Twitter General Counsel Sean Edgett warned them against "tons of public rumors and speculation" as the deal draws to a close. "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," he said, according to the memo seen by Bloomberg News.

Musk aims to slash its staff by 75 per cent in a matter of months, according to a report in The Washington Post. The $44 billion acquisition of the social network set to close by October 28, would reduce Twitter's staff to just over 2,000 people, compared with the 7,500 it currently employs, the Post reported, citing documents and sources.

Potential investors have been communicated about the plan for cuts in an attempt to double revenue within three years, according to the Bloomberg News.

In his memo, Edgett said discussions about cost savings and planning occurred earlier in the year. "Those discussions stopped once the merger agreement was signed," he said. "Since the merger agreement has been in place, there have been no plans for any companywide layoffs."

Meanwhile, Tesla Chief Executive Officer Elon Musk has said that he was excited about his pending acquisition of Twitter Inc, despite  overpaying for the social media firm, news agency Reuters reported. The Tesla CEO, the world's richest person, is pursuing the Twitter acquisition after trying to back out of the $44-billion deal earlier.