Elon Musk has instructed Twitter’s teams to save more than $1 billion in annual infrastructure costs by reducing cloud services and additional server space. In an effort to save money following his $44 billion acquisition, this was revealed in an internal Slack message, which also stated that the company hopes to save up to $3 million per day in infrastructure.
According to internal Twitter sources, who wish to remain anonymous, the cost-cutting project was dubbed the “Deep Cuts Plan” in the leaked Slack message, because Twitter is exploring whether to cut additional server storage held to ensure Twitter can handle high traffic, and Musk is willing to take that risk to achieve those goals.
According to another source and the Slack message, teams across Twitter are working to come up with a plan to achieve the cost savings by November 7, and the source said some staff have been instructed to work in the office every day of the week to meet the deadline.
Musk is also seeking cost savings through job cuts, with rumors circulating that the new Twitter CEO plans to fire half of the company’s workforce. An email was reportedly sent to employees confirming that the layoffs would take place on November 4, with the office temporarily closed and badge access suspended to ensure the safety of each employee, as well as Twitter systems and customer data.
Musk is also taking steps to wean Twitter off its dependence on advertisers, including the introduction of an $8 monthly fee for a blue tick, the reintroduction of Vine, and rumors that Twitter is working on a feature that would allow creators to charge users to watch their videos.
After the spending spree, comes the flood of cost-cutting.
The sources for this piece include an article in Reuters.