Elon Musk, the Twit chief, has refuted claims in a New York Times report over the weekend that he planned to lay off employees by Tuesday, Nov. 1, thereby barring staff from receiving equity grants as part of of their remuneration.
In response to a tweet from Eric Umansky, associate editor of ProPublica, who said Musk was “making sure to fire people on Twitter before part of their year-end pay starts on Tuesday,” Musk said, “That’s wrong.” He did not provide any clarification on what, in particular, was wrong.
Umansky’s tweet included a screenshot of a highlighted part of the NYT story which also noted that stock grants were a significant part of an employee’s salary, and laying off workers before then. , Musk could avoid paying the subsidies.
Musk did not respond to TechCrunch’s request for clarification on whether the layoffs will affect stock compensation. He may well have rebutted the entirety of the NYT story, which said Musk had ordered job cuts 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 last week when the executive visited Twitter headquarters, he said those numbers weren’t correct. Still, reports have surfaced of various layoffs at the social media company, including top Twitter executives like CEO Parag Agrawal, CFO Ned Segal, General Counsel Sean Edgett and Chief Policy Officer. Legal, Trust and Security Vijaya Gadde.
Musk’s $44 billion deal to buy Twitter closed late Thursday last week. The New York Stock Exchange ceased trading in shares of Twitter on Friday morning, where it had been listed since 2013. Twitter will officially delist from the exchange on November 8.
Current shareholders will receive $54.20, Musks’ purchase price, per share. It’s unclear how Twitter’s now-private status will affect current employees with stock awards.