Elon Musk plans to cut Twitter workforce by 75%

Just after declaring that he was overpaying for Twitter, there have been reports that Elon Musk is planning to cut Twitter's workforce by 75%

This is based on documents sighted by the Washington Post. If true, this will bring Twitter's workforce from 7500 to 2000 employees.

Musk is purchasing Twitter for $44 billion in a deal expected to close by 28 October 2022.

Twitter Investors to hit Elon Musk with a putative class action

A putative class action is a lawsuit brought by one or more plantiffs on behalf of a potential group of similarly situated individuals (known as a class) who allegedly suffered a common claim.Colchester, Pitre & McCarthy (www.cpmlegal.com), and Bottini & Bottini announced that they have filed a class action suit on behalf of all persons who sold the common stock and securities of Twitter (NYSE: TWTR) between the dates of 13 May 2022 and 4 October 2022. The lawsuit (Pampena v Elon Musk, Case No. 3:22-cv-05937) is pending in the United States District Court for the Northern District of California.

The lawsuit alleges that Elon Musk has issued false statements regarding his purchase of Twitter, including misleading tweets that the merger was "temporarily on hold" and "cannot go forward".

After the series of tweets and back and forth statements by Musk and Twitter, Twitter's stock price fell. On 4 October 2022, Elon Musk issued a statement that he will proceed with the purchase at a price of $54.20 per share.

Twitter share price closed at $49.94 on 12 October 2022.