- Elon Musk mentioned reports he’s speeding up layoffs to avoid paying out stock grants are false.
- Musk is ready to lay off workers earlier than Tuesday, once they’re scheduled to obtain stock grants, per the NYT.
- Media reports counsel that Musk might also avoid giving fired execs their anticipated multi-million-dollar payouts.
Reports that new Twitter proprietor Elon Musk is speeding up layoffs to avoid paying out hefty stock grants to workers are “false,” he mentioned.
The New York Times reported on Saturday that Twitter was set to lay off workers earlier than Tuesday, which is when employees had been scheduled to obtain stock grants as a part of their compensation. The Times reported that Musk may due to this fact avoid paying the grants.
“What a guy,” Eric Umansky, deputy managing editor at ProPublica, tweeted alongside a screenshot from the article and a hyperlink to the story. “@elonmusk is making sure to fire people at Twitter before part of their year-end compensation *kicks in on Tuesday.*”
“This is false,” Musk tweeted on Sunday in response, although he didn’t elaborate.
Twitter did not instantly reply to Insider’s request for remark, made exterior of normal working hours.
—Elon Musk (@elonmusk) October 30, 2022
Stock awards make up part of the compensation package of most Twitter workers. Twitter’s then board chair Bret Taylor mentioned in April that underneath the merger deal, staff would no longer be paid in restricted stock units, with their worker stock grants as an alternative being translated into money.
Rumors of Musk shedding Twitter employees en masse have been swirling since he first provided to purchase the corporate for $44 billion in April, although staff are still unsure who will likely be on the chopping block and when.
Musk and his internal circle has been quickly conducting an enormous evaluate of each the corporate and its employees, with The Washington Post reporting that his private lawyer Alex Spiro spent the weekend carefully crafting plans to lay off 25% of Twitter’s staff.
After the deal went by way of on Thursday, certainly one of Musk’s first strikes was to fire CEO Parag Agrawal, CFO Ned Segal, chief legal officer Vijaya Gadde, and general counsel Sean Edgett.
Agrawal had been set to get $38.7 million in payouts, due largely to the whole thing of his shares vesting upon his firing. Segal was set to depart with a $25.4 million payout and Gadde with $12.5 million.
According to each The Information and The New York Times, Musk dismissed the executives “for cause,” suggesting that he believed he was justified in making the transfer. The Information reported that the “for cause” terminations had been an try to avoid paying out severance pay and unvested stock awards.
The executives are mulling their subsequent transfer, an individual with information of the topic advised The Times.
Twitter had greater than 7,500 workers on the finish of 2021, an enormous soar from its greater than 5,500 on the finish of 2020, monetary filings present. Hirings throughout groups starting from gross sales and admin to R&D drastically pushed up Twitter’s payroll, contributing to the corporate’s complete prices and bills hovering round 50% to $5.57 billion in 2021.