Elon Musk and Twitter (flickr photo, freepik)
Elon Musk plans to lay off 1,000 Twitter employees as soon as his acquisition of the social media platform is completed. It is estimated that he will lay off many of the company’s staff following a transfer of ownership that will last about six months, after which Musk may swing the ax and start cutting back.
Over the next three years, Musk expects thousands of new employees to arrive, increasing the ranks to about 11,000, compared to 7,500 today. Most of the new talent is expected to be in engineering. At the company level, Musk has previously raised the idea of closing its headquarters in San Francisco to save money and that board members may also not receive a salary, shaving off another $ 3 million in expenses.
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The changes Musk has made are part of his plan to increase Twitter’s annual revenue five times from current levels to $ 26.4 billion by 2028, compared to $ 5 billion last year. Advertising on the platform is expected to drop to 45% of total revenue under Musk, a decline of about 90% in 2020.
By 2028, he plans for ads to generate $ 12 billion in revenue by 2028, while subscribers are expected to attract another $ 10 billion, according to the report. Musk prefers a subscription-based model over advertiser funding, as it will make Twitter at least subject to advertiser pressure. He even suggested that users can pay using cryptocurrency, including the Dogecoin cryptocurrency that Musk has long developed an affection for.
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 will increase by taking on $ 13 billion in debt as part of Musk’s acquisition of the company. However, he plans to repay the debt and increase the company’s cash flow.
The billionaire promised to revive the company and expand the number of users by blowing up spam bots and reducing the amount of moderation to allow for more ‘freedom of expression’. Musk expects the social media company to bring in $ 15 million from payment business in 2023 that will grow to about $ 1.3 billion by 2028.
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