Twitter dismisses reports of mass layoffs, tells employees they are 'rumors'

Christopher Hutton

October 21, 03:14 PM October 21, 03:14 PM

Twitter's legal team dismissed recent reports that Elon Musk intended to lay off the majority of Twitter's staff as the company approaches the finalization of its deal with the billionaire.

Twitter's legal counsel addressed employees in a Friday email about recent reports that Musk intended to let off 75% of Twitter's staff upon his final acquisition of the company before the Oct. 28 deadline. The company dismissed the claims outright and implored employees to wait for official word from the company before concerning themselves with such claims.

"Please know, as we get closer to deal close, there will continue to be tons of public rumors and speculation," Sean Edgett, Twitter's general counsel, said in an email, according to NBC News.

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"First, 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 added. The counsel noted that Twitter had engaged in "targeted cost savings discussions and planning" earlier in 2022 but that the discussions ended when Musk and Twitter signed a deal in April. Twitter executives have not discussed any additional plans regarding company-wide layoffs.

Musk reportedly shared plans with prospective investors expressing a desire to cut Twitter's workforce by 75%, according to documents acquired by the Washington Post. While Twitter has denied these plans, employees have already begun to leave the company due to distrust in leadership and concerns about Musk's vision for the company.

Twitter and Musk have until Oct. 28 to finalize the purchase after Musk agreed to end his legal battle with the company in early October, or else risk a necessary appearance in trial to complete the purchase.

Musk is also facing pressure from federal regulators. The Biden administration is considering whether to review Musk's Twitter deal over concerns about foreign funders.