Co-founder Jack Dorsey has apologized for expanding Twitter “too rapidly,” a day after new owner Elon Musk lay off hundreds of staff. Twitter alerted employees on Thursday evening that it will begin layoffs.
Twitter co-founder Jack Dorsey apologized Saturday for growing the business “too rapidly,” a day after Elon Musk, the firm’s new owner, let off over half of its staff.
Dorsey tweeted, “Twitter users, past and present, are strong and resilient. They will always find a way, no matter how terrible the situation. I understand that many people are upset with me. I accept full responsibility for everyone’s predicament: I expanded the firm too rapidly. Please accept my apologies.”
According to records filed with the U.S. Securities and Exchange Commission, Twitter had around 2,000 workers as of June 30, 2013, soon before the social media business went public. The corporation has around 7,500 full-time employees as of the end of last year.
Musk, the CEO of Tesla and SpaceX, took over Twitter on October 28 and immediately began laying off employees. Twitter warned employees Thursday evening that it will begin laying off personnel.
The layoffs affected a total of 983 employees in California, the company’s home state. Musk tweeted on Friday afternoon, “Regarding Twitter’s reduction in force, regrettably there is no option when the firm is losing over $4M/day. Everyone who left was given three months’ severance pay, which was 50% more than what was legally necessary.”
Twitter’s workforce decrease expanded outside California, and CNBC could not immediately validate Musk’s claim. A $4 million a day loss for the firm would equate to a $1.5 billion annual deficit.
Dorsey co-founded Twitter with Noah Glass, Biz Stone, and Evan Williams in 2006. Dorsey served as CEO twice during leadership transitions and resigned down last year.
Dorsey was followed as CEO by the company’s then-chief technical officer, Parag Agrawal, who left as part of Musk’s acquisition. Dorsey has since focused completely on his payments business Block, formerly known as Square. He has been a vocal supporter of Musk’s takeover. Dorsey had said in a tweet, “This is the correct route… I believe it with all my heart.”