As Musk stated in an email, Twitter employees will not be laid off, but will continue to receive substantial stock and pay incentives starting March 24.
There is a statement in the email that rewards are based on performance, but no details are provided. Several well-known executives have been forced to leave Elon Musk’s company after he recently laid off a large number of his engineering and product teams. In accordance with people familiar with the matter, the laid off employees will most likely miss out on the vest date in May, when they will receive a cash payout on the pre-acquisition stock purchased at a cost of $54.20, which was expected to be received by the layoff employees. Despite the fact that Twitter hasn’t officially announced the plan, it’s still unclear as to how it will work since they haven’t officially announced it yet.
READ MORE: The FTC warns: Be careful with AI claims
There were several rounds of layoffs at Twitter before Elon Musk announced that he believed his company’s backbone is made up of the employees who remain there. It has been reported that SpaceX provides its employees with private stock, which they can sell periodically to potential investors for cash. There is, however, a great deal of uncertainty regarding the market interest that will be generated by Twitter stock in the short term due to Twitter’s poor financial position.
In the wake of the acquisition, Elon Musk promised employees that they would receive private stock awards in a similar manner to the SpaceX model. As the source pointed out, some employees have been informed that they will receive shares twice a year, and they will be able to sell them twice a year at a third-party valuation. However, it has not been confirmed whether this package is available to all employees or if it is only available to some employees. It was on February 1 that Twitter granted employees access to some of the stock they had before the acquisition was completed, and then many employees left due to layoffs.
