- Tesla Inc TSLA CEO Elon Musk has ordered Twitter Inc Teams to find up to $1 billion in annual infrastructure cost savings, raising concerns that Twitter could be sidelined during busy events like the US midterm elections.
- Twitter needs to find between $1.5 million and $3 million a day in savings from servers and cloud services, Reuters reported citing Muck’s Slack message, which dubbed the project “Deep Cuts Plan.”
- Also read: Twitter Blue members lose access to ad-free articles as Musk overhauls business model post-acquisition
- According to an internal document, Twitter is currently losing about $3 million a day “taking into account all expenses and income.”
- The drastic infrastructure cuts could put the Twitter website and app at risk of shutting down during critical events as users rush to Twitter to consume and share information.
- Twitter considered cutting off additional server space that was helping Twitter handle heavy traffic.
- Musk is willing to take that risk to achieve those goals.
- Teams on Twitter battled to come up with a cost savings plan by November 7th.
- Cost reductions could also result from lower spending on alphabet inc WELL Google Google Cloud Services.
- Previous news reports suggested that Musk plans to cut 3,700 jobs, or 50% of them Employees, at Twitter to cut costs.
- Photo By Clker Free Vector Images from Pixabay
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