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Twitter lays off staff as Musk blames activists for 'massive' ad revenue drop

Published 11/03/2022, 08:34 PM
Updated 11/04/2022, 11:07 PM
© Reuters. FILE PHOTO: A view of the Twitter logo at its corporate headquarters in San Francisco, California, U.S. October 28, 2022. REUTERS/Carlos Barria

By Sheila Dang, Katie Paul and Paresh Dave

(Reuters) -Twitter Inc laid off half its workforce on Friday but said cuts were smaller in the team responsible for preventing the spread of misinformation, as advertisers pulled spending amid concerns about content moderation.

Tweets by staff of the social media company said teams responsible for communications, content curation, human rights and machine learning ethics were among those gutted, as were some product and engineering teams.

The move caps a week of chaos and uncertainty about the company's future under new owner Elon Musk, the world's richest person, who tweeted on Friday that the service was experiencing a "massive drop in revenue" from the advertiser retreat.

Musk blamed the losses on a coalition of civil rights groups that has been pressing Twitter's top advertisers to take action if he did not protect content moderation - concerns heightened ahead of potential pivotal congressional elections on Tuesday.

After the layoffs, the groups said they were escalating their pressure and demanding brands pull their Twitter ads globally.

"Unfortunately there is no choice when the company is losing over $4M/day," Musk tweeted of the layoffs, adding that everyone affected was offered three months of severance pay.

The company was silent about the depth of the cuts until late in the day, when head of safety and integrity Yoel Roth tweeted confirmation of internal plans, seen by Reuters earlier in the week, projecting the layoffs would affect about 3,700 people, or 50% of the staff.

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Among those let go were 784 employees from the company's San Francisco headquarters and 199 in San Jose and Los Angeles, according to filings to California's employment authority.

Roth said the reductions hit about 15% of his team, which is responsible for preventing the spread of misinformation and other harmful content, and that the company's "core moderation capabilities" remained in place.

Musk endorsed the safety executive last week, citing his "high integrity" after Roth was called out over tweets critical of former President Donald Trump years earlier.

Musk has promised to restore free speech while preventing Twitter from descending into a "hellscape."

President Joe Biden said on Friday that Musk had purchased a social media platform in Twitter that spews lies across the world.

"And now what are we all worried about: Elon Musk goes out and buys an outfit that sends - that spews lies all across the world... There’s no editors anymore in America. There’s no editors. How do we expect kids to be able to understand what is at stake?"

Major advertisers have expressed apprehension about Musk's takeover for months.

Brands including General Motors Co (NYSE:GM) and General Mills Inc (NYSE:GIS) have said they stopped advertising on Twitter while awaiting information about the new direction of the platform.

Musk tweeted that his team had made no changes to content moderation and done "everything we could" to appease the groups. Speaking at an investors conference in New York on Friday, Musk called the activist pressure "an attack on the First Amendment."

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Twitter did not respond to a request for comment.

ACCESS TO SYSTEMS CUT

The email notifying staff about layoffs was the first communication Twitter workers received from the company's leadership after Musk took over last week. It was signed only by "Twitter," without naming Musk or any other executives.

Dozens of staffers tweeted they had lost access to work email and Slack channels overnight before receiving an official layoff notice on Friday morning, prompting an outpouring of laments by current and former employees on the platform they had built.

They shared blue hearts and salute emojis expressing support for one another, using the hashtags #OneTeam and #LoveWhereYouWorked, a past-tense version of a slogan employees had used for years to celebrate the company's work culture.

Twitter's curation team, which was responsible for "highlighting and contextualizing the best events and stories that unfold on Twitter," had been axed, employees wrote.

Shannon Raj Singh, an attorney who was Twitter's acting head of human rights, tweeted that the entire human rights team at the company had been sacked.

Another team that focused on research into how Twitter employed machine learning and algorithms, an issue that was a priority for Musk, was also eliminated, according to a tweet from a former senior manager at Twitter.

Senior executives including vice president of engineering Arnaud Weber said their goodbyes on Twitter on Friday: "Twitter still has a lot of unlocked potential but I'm proud of what we accomplished."

Employees of Twitter Blue, the premium subscription service that Musk is bolstering, were also let go. An employee with the handle "SillyRobin" who had indicated they were laid off, quote-tweeted a previous Musk tweet saying Twitter Blue would include "paywall bypass" for certain publishers.

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"Just to be clear, he fired the team working on this," the employee said.

DOORS LOCKED

Twitter said in its email to staffers that offices would be temporarily closed and badge access suspended "to help ensure the safety of each employee as well as Twitter systems and customer data."

Offices in London and Dublin appeared deserted on Friday, with no employees in sight. At the London office, any evidence Twitter had once occupied the building was erased.

A receptionist at Twitter's San Francisco headquarters said a few people had trickled in and were working in the floors above despite the notice to stay away.

A class action was filed on Thursday against Twitter by several employees, who argued the company was conducting mass layoffs without providing the required 60-day advance notice, in violation of federal and California law.

The lawsuit asked the San Francisco federal court to issue an order to restrict Twitter from soliciting employees being laid off to sign documents without informing them of the pendency of the case.

Latest comments

Musk will be the worst thing that could happen to Twitter. Luckily it’s he’s own money he is wasting this time. This fiasco will drag Tesla with it into a deep hole
Tesla has nothing to do with it
Keep up the good work activist’s hope Musk will go bankrupt he is too dangerous for democracy Biden is right
What did he do to deserve that? As far as I can remember he is one of the only CEO who directly help Ukraine for free with his satellites.
He has some PR issues in other areas.
Hes literally just shooting himself in the foot repeatedly with this deal.
Twitter has been a REAL “threat to democracy” with its blatant censorship of conservatives and now-documented collusion with the democrats. So, good riddance to all those employees that have been violating our free speech rights!
Why do reTrumplicans like you make everything political? Twitter had clear rules about what was and was not acceptable and it had nothing to do with politics. If more Conservatives tended to get banned than non-Conservstives it was simply because they broke the rules more, and were more likely to spread lies, violent threats, and disinformation.
Musk has buyer's remorse lol
PRIVATELY HELD!!! WHO CARES
Elon is personally tossing each employee out the door. Should wrap it up in a week or two.
Elon needs to not pay wages to pay the bankers instead.
did elon tell you that?
  Look up the #s.  Compare TWTR's profits to Elon's interest payments for the loans he took out to buy TWTR.
this is all starting to look like a lesson from trump university in how to run a once successful business into the ground.. btw what happened to trump university?
You know the guy that owns Twitter will likely be the first person to reach 1trillion in wealth.
 Driving advertisers off TWTR is a poor way "to reach 1trillion in wealth."
Advertisers will come back after he cleans house doubles the ads cost, add user pays subscription, streamlines moderation and secures freedom of speech platform. Everyone who doesn't agree can go and cry in the corner. :)
bahahahahahahaha.I hope you voted for biden,and you get Evicted.Unemployment amounts in every state are for the 1990s.I know its $240 a week in AZ..Idk CA....Biden will save you twits....bahahahahahahaha...Reach out to nance,and get a form letter,directing you to donate!
Does she scam Americans into donating like Trump does?
worked for a number of companies that took a similar approach to layoffs...you can't allow code and malware to be installed on operating systems by disgruntled employees. Real world business.
There are less non-disgruntled employees to make sure malwares and bugs get scrubbed from the platform.
downfall of twitter starts with this attitude it seems it shows their mindset of new management for future
what a heartless shameless person! he must a Republican!
But you apparently had no problem with all those employees blatantly engaging in censorship of any opinions they didn’t agree with. Too bad they couldn’t all be shown the door!
Wrong, Phil. Are you really that naive that you think individual employees choose what to censor, based on their own opinions? Employees do the bidding of the company by following clearly-defined rules for what is, or is not, allowed. You've clearly never read the Terms of Service for opening an account. Censorship is based on documented TOS rules, not politics and not opinions of individual employees.
he's not dipchit..I'm sure you're a Democrat tho.biden is a documented pathological liar.
Elon Musk borrowed a billions of $ to buy TWTR.  People are getting fired so Elon can pay interest to bankers.  I guess that's something some people like to celebrate.
  I know.  Some people want to see more unemployment to help their party regain power.
Are you referring to the covid lockdowns?
These guys are "professionals"...why bother if they get fired.
Volkswagen better focus on the quality of their cars....not so happy with the passat's performance.
Volkswagen better focus on the quality of their cars....not so happy with the passat's performance.
Hi this is bad bot. You don't have a job no more
Love it. Cleaning house the capitalist way.
Love it. Cleaning house the capitalist way.
Elon obviously regrets his decision. He might as well have just wiped his ****with the billions.
satisfaction!!!
Good. We are going to try and grab some engineers from Chicago office. Good news for people leaving and companies who will get the needed talent. F muskrat
They have no talent in their ranks.  They are about to now.
talent?
what talent lol, Twitter done nothing since IPO, Elon saved their ass. Stock would be $10.
Of course the employees loved it. most did nothing and got paid a ton. now the company has to actually turn a profit.
Gotta clean the *****out like farmer would do in his farm
musk will be fine. cleaning house is necessary. get rid of the indoctrination twitter imposed politically. twitters future is bright. freedom of speach is the big one and verified accounts eliminating bots.
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