Over the weekend, Elon Musk, CEO of Twitter, laid off many employees in its eighth round of job cuts since October.

These job cuts follow several rounds of job eliminations, which affected thousands of employees.

The Information reported that Twitter laid off at least 50 people on Saturday.

However, the number of cuts are thought to be much higher, and span across multiple departments.

The cuts are part of Musk’s aim to battle a huge loss in the social media company’s revenue since he took over.

Paul Holcroft, Managing Director at Croner, says:

“At the moment, it’s unclear how much of Twitter’s UK-based workforce are affected by the recent round of redundancies. However, as the cost-of-living crisis continues to put strain on organisation’s profitability, it’s somewhat unsurprising that several businesses are looking at ways to make cost savings and protect their long-term financial viability. However, it’s important for employers to exhaust all other options and not jump straight to making staff redundant. Failing to take into consideration and/or trial alternatives could lead to successful claims of unfair dismissal.

“Some alternatives may include removing overtime work, halting recruitment processes, seeking agreement to reduce salaries or working hours and temporary periods of lay off or short time working. If these aren’t feasible, employers must remember that a genuine and meaningful consultation period must take place before any dismissals can be confirmed.

“In the USA, redundancy or “lay-off” rules differ greatly than that in the UK. As such, employers shouldn’t see the reports of “Twitter layoffs” as a green light to undertake similar dismissals of staff. Those who do so will likely face tribunal action from discontent employees.”

Alexia Pedersen, VP or EMEA at O’Reilly, says;

“Redundancies are not made lightly. Organisations are considering several factors and deciding to reduce costs given the current economic uncertainty, with forecasted numbers showing a reduced demand for services and products.

“The technology sector stands out because there has been a period of rapid acceleration in digital transformation over recent years. This was accentuated by the pandemic, as many businesses had to rapidly move to an online presence in a very short timeframe. New skill sets were hired, and employees were upskilled to help organisations transition. Some of these projects have now been completed and talent is no longer required, whilst some of these projects are still underway, budgets are being cut in line with the economic projections being suggested by many economists.

“Britain currently has its lowest unemployment rate since 1974, and while the tech sector has taken a global hit, the UK hasn’t felt it so strongly. While headlines emphasising the mass layoffs dominate the media, the numbers aren’t matching up. At Meta, 650 staff out of 11,000 total were laid off in the UK, yet the roles for tech companies remain open.

“Some tech companies will want to take a cautious view and prepare for what may lie ahead by reducing costs, but the situation in the UK isn’t necessarily mirroring the global trend.”

 

 

 

 

Amelia Brand
Amelia Brand

Amelia Brand is the Editor for HRreview, and host of the HR in Review podcast series. With a Master’s degree in Legal and Political Theory, her particular interests within HR include employment law, DE&I, and wellbeing within the workplace. Prior to working with HRreview, Amelia was Sub-Editor of a magazine, and Editor of the Environmental Justice Project at University College London, writing and overseeing articles into UCL’s weekly newsletter. Her previous academic work has focused on philosophy, politics and law, with a special focus on how artificial intelligence will feature in the future.