Elon Musk, the tech billionaire, has told Twitter employees that the platform “needs to get healthy” financially and cut costs, implying that job cuts are likely if his deal to buy the social media service goes through.
When asked about the possibility of layoffs during an internal Q&A, Musk said, citing employees, “Right now costs exceed revenue.”
“That’s not a great situation,” he added.
Since Musk first announced his intention to purchase Twitter, the issue of layoffs has been on everyone’s mind.
At a previous meeting, Twitter CEO Parag Agrawal informed employees that layoffs were not planned “at this time.” Though Musk did not explicitly state whether or not there would be job cuts, his comments indicate that the likelihood is high.
Meanwhile, he stated that employees who do “excellent” work should be allowed to work from home.
He did, however, clarify that he prefers to work in person and would confirm with managers that remote employees were positively contributing to the company.
The response came during a virtual all-hands meeting with Twitter employees, where Tesla CEO Elon Musk addressed workers for the first time and answered pre-submitted questions read aloud by a Twitter executive.
The meeting takes place in the midst of Musk’s $44 billion takeover attempt.