Layoff targeting Twitter's 'failed field' will newly dismiss 40 people such as advertising department, stop payment of retirement allowance

While advertising revenue, the pillar of Twitter's revenue, has been pointed out to be sluggish, Twitter's management will proceed with personnel reductions in areas that Twitter's management considers to be performing poorly or in areas that it judges to be unimportant, and will be in charge of advertising and monetization. About 40 employees in the division have reportedly been cut.

Musk Lays Off Twitter Engineers Working on Advertising, As Ad Revenue Shrinks — The Information
https://www.theinformation.com/articles/musk-lays-off-twitter-engineers-working-on-advertising-as-ad-revenue-shrinks

Elon Musk Lays off Even More Twitter Employees
https://gizmodo.com/elon-cuts-costs-by-laying-off-the-people-who-make-money-1849955413

Laid-Off Twitter Workers Remain in Limbo Over Severance Packages - Bloomberg
https://www.bloomberg.com/news/articles/2023-01-05/laid-off-twitter-workers-remain-in-limbo-over-severance-pay

According to the news site The Information, Twitter has embarked on at least the fourth large-scale layoff since its acquisition by Elon Musk, with 40 employees working mainly in data science and engineering in this layoff. was said to have been targeted. Officials who provided information to technology media site Gizmodo said product software engineering, monetization and advertising forecasting teams were among the hardest hit.

Of these, the advertising prediction team was responsible for optimizing advertisements delivered to Twitter users using machine learning and developing advertising algorithms. Therefore, it has been pointed out that the ability to optimize Twitter's advertising business may be further compromised without human resources with engineering expertise in the advertising field.

In fact, Twitter's advertising business has struggled since Musk took over as CEO. It has become clear that advertisers who were concerned about Mr. Mask's policy have left Twitter, and it is reported that major advertising agencies are also recommending customers to review the placement of advertisements, and General Motors has already and United Airlines have announced that they will temporarily suspend advertising on Twitter. As a result of these developments, it was reported that advertising revenue, which was expected to flourish due to the FIFA World Cup Qatar 2022 , was 80% lower than the internal forecast.

Report that Twitter's World Cup related advertising revenue is 80% lower than expected

Following the decline in advertising revenue, which accounts for 90% of Twitter's sales, Twitter has announced that it will lift the ban on political advertising, which has been completely banned since 2019. In addition to this, Twitter is making thorough cost reductions, such as asking the owner to review the rent by delinquent rent of the office at the headquarters, and employee welfare is also subject to it.

According to a report by economic media Bloomberg, employees who were dismissed all at once in November 2022 were initially offered ``three months of retirement benefits, which is 50% more than legally required. It's a lot,' Musk tweeted , but he said that retirement payments had stopped at two months' worth, the minimum amount required by law. No word from Twitter since, and the former employee has not received the remaining additional retirement benefits or any information about the health insurance called COBRA .

Gizmodo reached out to Twitter about these legal issues, but the company said it no longer has a public relations department responsible for media relations and has received no response.