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As the 28th October deadline for finalizing Elon Musk’s Twitter takeover deal draws ever closer, events are predictably moving at a breakneck pace. Twitter is now trying to negate reports that a hefty wave of layoffs is imminent.
A few days ago, the Delaware Court of Chancery had stayed the trial between Elon Musk and Twitter until 05:00 p.m. on the 28th of October in order to allow both parties to close the takeover agreement after the CEO of Tesla expressed willingness to adhere to the original terms, eschewing objections over the quantum of bots that proliferate the social media platform or the security concerns raised by a high-profile whistleblower.
Yesterday, Washington Post cited private interviews and documents to report that Elon Musk was planning to lay off as much as 75 percent of Twitter’s workforce, paring the headcount to just 2,000 employees from the current strength of around 7,500.
However, Bloomberg has now come forth to report that Twitter is reassuring its employees that no such mass layoff plans are under consideration. Bloomberg has cited an internal memo by Twitter’s General Counsel Sean Edgett in which he notified the social media platform’s employees to expect “tons of public rumors and speculation” as the deal nears consummation. The memo goes on to note:
“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.”
In other news, the Biden administration is reportedly weighing the placement of Elon Musk’s recent ventures, including the ongoing Twitter takeover process, under a security review. One possible avenue would be for the US Treasury’s Committee on Foreign Investment in the United States (CFIUS) to conduct a comprehensive review, given the presence of foreign funding in Musk’s Twitter takeover gambit, including an equity pledge from the Saudi Price Al Waleed. Of course, should this review take place, it would further complicate a speedy closure of the takeover agreement. Perhaps this is exactly what Elon Musk wants. Meanwhile, stay tuned for further updates.