Elon Musk promises ‘very significant’ Twitter stock awards to remaining employees after latest round of layoffs, reports say Twitter CEO Elon Musk sent employees an email promising significant performance-based stock rewards on Monday.
It follows the third round of layoffs since November that has reduced Twitter’s headcount to less than 2,000. “Last week, we completed a difficult organizational overhaul focused on improving future execution,” Elon Musk wrote. “Those who live are highly respected by those around them.”
Twitter employees received an email Monday from CEO Elon Musk announcing they can expect substantial stock awards based on their performance. Twitter stock compensation is due on March 24, The Verge reported, citing a memo titled “Performance Awards.”
Monday’s statement comes after the social media company reported its third round of layoffs since Musk’s acquisition in October. Twitter now has fewer than 2,000 employees, compared to an estimated 7,500 before the company changed hands. “Last week, we completed a difficult organizational overhaul focused on improving future execution,” according to the memo first cited by Platformer. “Those who live are highly respected by those around them.”
After taking the company private in the fall, Musk reassured employees that they could still expect Twitter stock awards as part of their compensation packages. The system would be similar to SpaceX – his privately held rocket and satellite company – where employees are given rewarded stock in May and November and allowed to sell them whenever they make a secondary offering to raise new funds.
In January, the firm was valued at around $137 billion. “With SpaceX, exceptional amounts of stock will be awarded for exceptional performance,” he wrote in November. Given the company’s financial straits, including an advertising exodus that has taken a toll on revenue, it’s unclear how much private shares in Twitter could be worth.
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