Elon Musk, Chief Twit, has the claims of a New York Times Report this weekend stating that he plans to lay off employees before Tuesday, Nov. 1, preventing staff from receiving stock grants as part of their compensation.
In response to a tweet from ProPublica’s deputy editor-in-chief Eric Umansky, who said Musk “got people fired on Twitter before part of their year-end pay goes into effect on Tuesday,” Musk said: “This isn’t true.” He did not clarify what was particularly false.
Umansky’s tweet included a screenshot of a highlighted portion of the NYT story that also noted that stock exchanges make up a significant portion of an employee’s wages, and firing employees before that date will prevent Musk from paying the exchanges.
Musk did not respond to londonbusinessblog.com’s request for clarification on whether the layoffs will affect stock compensation. It’s entirely possible that he has refuted the entire NYT article, which said Musk would have cut jobs across the company, citing “four people with knowledge of the matter.” But that seems unlikely, given the layoffs already underway.
Previous reports said Musk would lay off 75% of Twitter staff, but when the CEO visited Twitter’s headquarters last week, he said those numbers were incorrect. Still, reports have surfaced of several layoffs at the social media company, including top Twitter executives such as CEO Parag Agrawal, CFO Ned Segal, General Counsel Sean Edgett and Head of Legal Policy, Trust and Safety Vijaya Gadde.
Musk’s $44 billion deal to buy Twitter went through late Thursday last week. The New York Stock Exchange stopped trading the shares of Twitter, where it had been listed since 2013, on Friday morning. Twitter will be officially delisted from the stock exchange on November 8.
current shareholders will be paid $54.20, Musk’s purchase price, per share. It’s not clear how Twitter’s now private status will affect current stock exchange employees.