Twitter seeks to reassure employees as Elon Musk deal is imminent.

Twitter seeks to reassure employees as Elon Musk deal is imminent.

Musk's $44 billion deal to acquire Twitter is due to close on October 28 at the latest, and the company is trying to reassure its employees about hiring and compensation.

Twitter is trying to quell employee fears as fears over a social media service overhaul have grown due to Elon Musk's imminent takeover of the company, but his convictions have come to an end.

Twitter, which Musk bought for $44 billion within a few months, shook up 7,500 employees. As the acquisition resumes and the acquisition is expected to close by next Friday at the latest, anxiety within the company is further heightening.

Fears from employees grew even greater when the Washington Post reported on Thursday that Musk plans to cut Twitter staff by 75% over the next few months to just over 2,000. Five employees, who could not speak publicly, said workers were also concerned about how their salaries would change after Musk switched the company from a public to private company.

Late on Thursday night, Twitter tried to alleviate some of the worries. In a note to employees after the layoff announcement, General Counsel Sean Edgett said there were no plans to layoffs.

He continued, "There is nothing confirmed about the buyer's plans after the store, and it is better not to follow rumors or leaked documents, but to wait for the facts from us and the buyer directly." This was previously reported by Bloomberg.

Whatever Twitter does to reassure employees, that may not be enough. Musk, a well-known mercury entrepreneur, once he's done a deal with a company, he can do whatever he wants with the company. And he said he plans to make big changes.

Musk said he wants more freedom of expression on the platform and will allow former President Donald J. Trump, who was banned from work, to return to Twitter. Musk, who has been an open critic of Twitter's leadership, said he plans to add more subscription services to Twitter, cut jobs, and attract more users to the service.

As of Friday, the trade appeared to be running towards the finish line. The investment banks that provided $12.5 billion in funding for Musk's Twitter takeover are continuing to work toward completing those promises before the October 28 deadline, one person familiar with the situation said. Sources said Musk's advisors are also sharing financial analysis of the company with investors.

If the deal is successful, Musk is expected to run Twitter on a tight budget. The billionaire who oversees electric car maker Tesla and rocket company SpaceX has been embroiled in expensive payouts with more than $12 billion in loans to finance the Twitter acquisition. Investors who have invested more than $7 billion in purchases will also end up expecting a return.

Musk, who pays $54.20 per share on Twitter, has made it clear that he thinks he's paying too much for the company, as stock prices have plummeted in recent months. "Obviously me and other investors are paying too much for Twitter," he said in a Tesla quarterly earnings call on Wednesday.

Musk's legal representative declined to comment. Twitter declined to comment.

Inside Twitter, employees have been on the cutting edge since Musk became the company's largest shareholder this year. Concerns over his ownership were exacerbated by Twitter's inconsistent business status.

Earlier this year, Twitter was considering cost-cutting measures, including not replacing employees who were laid off due to fatigue and small layoffs, two people familiar with the plan said. Twitter has been aggressively cutting costs in recent months, freezing jobs for most jobs and cutting real estate.

Employees are also concerned that Musk will not continue to pay compensation as planned, five employees said. Under the terms of the deal, Musk has agreed to continue paying Twitter employees similar salaries and benefits for one year. But their just compensation will change. 4,444 Twitter's 4,444 employees currently receive shares in the company on a regular basis, which is earned over time under their employment contract. However, these subsidies must be replaced with cash as Musk plans to take the company private and Twitter stock will be taken out of the listing. Shares already earned by employees will be paid out at the price Musk agreed to pay Twitter.

Some employees said they were concerned that Musk would not fulfill the contract, given that Musk continued to change his mind about the deal. To address concerns, Twitter has created an internal document to answer questions about how Musk's stock reward could change, according to three sources familiar with the matter.

Through an internal Slack channel, employees sought each other advice on how to manage their finances during the merger, the three people familiar with the conversation said. Some people have been advised to upload stock contracts in case Musk tries to delete or change them.

Three employees said salary uncertainty has created friction between Twitter employees and company management. Because if Musk launches, top management will get a golden parachute worth millions of dollars.

Twitter's chief executive, Farag Agrawal, will receive more than $60 million in cash and stock if Musk fires him. Other CEOs make more than $20 million. In response to employee questions about executive salaries, Twitter executives said executive salaries are typical for takeovers.

Some Twitter employees said they wanted to get a job by at least November 1.

Other employees responded with dark humor about the prospect of layoffs, joking how long Musk would remain with the company after his takeover.

One Twitter employee tweeted, "Everything is ready for 2023," referring to the company meeting. He turned on a video of only four people dancing.