Twitter employees have been tasked with finding $1 billion in annual infrastructure cost savings by new CEO and owner Elon Musk
Internal Slack message originally reported by Reuters (Opens in a new tab) Insiders at the social network saw they would save between $1.5 million and $3 million a day in cost cuts in areas such as servers and cloud hosting services, as part of a basket of measures called the “Deep Cuts Plan.”
Additionally, Slack’s messages claimed that Twitter is currently bleeding around $3 million a day “taking into account all expenses and revenue.”
Who will the cuts affect?
Google Cloud, a large Twitter cloud provider, is set to take some cuts if the sources are to be believed.
In addition, employees can now also be put under extreme pressure to get results in a short period.
“Teams via Twitter” has reportedly been tasked with submitting a plan for cost savings by the November 7 deadline according to the news organization’s sources.
It may be in their best interest to do well; It was previously reported that Twitter plans to lay off up to 3,700 workers under the new ownership.
In addition, the sources claimed that some employees of the company expressed disregard for the feasibility of Musk’s plans.
Quote one source before Reuters He called it the “dummy” idea and suggested that it might increase the risk of stopping during heavy traffic periods such as the US election.
Twitter may also need to deal with the possibility of lower total revenue.
Elon Musk Twitter took over (Opens in a new tab) To declare that his latest acquisition has seen “a massive drop in revenue, due to the pressure of activist groups on advertisers”.
It’s not just Twitter that spends huge, and possibly very large, amounts of money on cloud services.
A recent report commissioned by Couchbase found that with a typical organization spending more than $33 million annually on cloud services, and spending 35% more than is necessary, Many lose more than $8.75 million It can be saved or spent elsewhere.