Elon Musk, Director of Twit, has refuted claims from a New York Times report announced later this week that he plans to lay off employees by Tuesday, November 1, thus cutting employees who receive stock benefits as part of their compensation.
Responding to a tweet from Eric Umansky, ProPublica’s deputy editor, saying that Musk “makes sure to fire everyone at Twitter before part of their year-end compensation starts on Tuesday,” Musk said: “This is wrong.” He doesn’t provide any explanation as to what, specifically, is wrong.
Umansky’s tweet included a screenshot of a highlight of the NYT story also noting that stock grants make up a significant portion of an employee’s pay, and that by firing workers before that date, Musk can avoid paying subsidies.
Musk did not respond to TechCrunch’s request about whether the layoffs would affect stock compensation. He most likely refuted the entire NYT article, which said that Musk allegedly ordered job cuts across the company, citing “four people with knowledge of the matter.” “. But that seems unlikely, given the layoffs are underway.
Previous reports said Musk would lay off 75% of Twitter employeesbut last week when the CEO visited Twitter headquarters, he said Those numbers are not correct. However, reports have emerged of various layoffs at the social media company, including top Twitter executives such as CEO Parag Agrawal, Chief Financial Officer Ned Segal, General Counsel Sean Edgett and Head of Legal Policy, Trust and Safety Vijaya Gadde.
Musk’s The $44 billion deal to buy Twitter passed by late last Thursday. The New York Stock Exchange stopped trading in shares of Twitter on Friday morning, where it has been listed since 2013. Twitter will go official. delisting from the stock exchange on Nov.
Current shareholder will be paid $54.20, Musks purchase price, per share. It’s unclear how Twitter’s currently private status will affect current employees with stock grants.