Twitter chairman Elon Musk plans to cut 3,700 jobs or 50% of the workforce social media platform in a cost reduction measure.

What happened: That Tesla Inc TSLA CEO, also the new owner of Twitter, will update employees on Friday about the upcoming layoffs, Bloomberg reportedciting people familiar with the matter.

Also on the chopping block is Twitter’s policy of working from anywhere, and remaining employees are being asked to report to offices with some exceptions, according to the report.

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The final number of staff cuts is still uncertain and could change, Bloomberg noted.

The laid-off workers will reportedly be offered 60 days’ worth of severance pay, according to two Bloomberg sources.

Twitter did not immediately respond to Benzinga’s request for comment.

Why it matters: Musk bought Twitter for $44 billion and it is under pressure to cut costs after making a deal in which he overpaid, Bloomberg noted.

The billionaire entrepreneur denied plans to do so last week 75% of Twitter employees fired had not expressly rejected layoffs.

He told employees not to worry if they made “significant contributions” to the platform.

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