Musk orders Twitter to slash cloud and other tech infrastructure costs
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Twitter employees charged with finding $1 billion in annual infrastructure cost savings by new CEO and owner Elon Musk
An internal Slack message originally reported by Reuters (opens in new tab) saw social network employees told to save between $1.5 million and $3 million a day through cost savings in areas such as servers and cloud hosting services, as part of a package of measures dubbed the “Deep Cuts Plan.”
In addition, the Slack posts claimed that Twitter is currently bleeding about $3 million a day “with all expenses and revenues in consideration”.
Who will the cuts affect?
Google Cloud, a major provider of cloud services for Twitter, will implement some of the cuts if we are to believe the sources.
In addition, employees could now also come under a lot of pressure to get results in a short period of time.
According to sources from the news organization, “Teams over Twitter” are reportedly tasked with presenting a plan to achieve cost savings by a November 7 deadline.
It may be in their interest to do a good job; it has previously been reported that Twitter plans to lay off up to 3,700 employees under its new ownership.
In addition, the sources claimed that some company employees have expressed cynicism about the feasibility of Musk’s plans.
A source quoted by Reuters called the idea “insane” and suggested it could increase the risk of downtime during high-traffic periods, such as US elections.
Twitter may also need to deal with the potential for lower overall revenue.
Elon Musk went to Twitter (opens in new tab) to state that his latest acquisition “has had a massive drop in sales due to campaign groups pressuring advertisers”.
It’s not just Twitter that is spending a lot, if not too much, on cloud services.
A recent report commissioned by Couchbase found that with the average enterprise spending more than $33 million a year on cloud services and spending 35% more than it needs to, many lose more than $8.75 million that could be saved or elsewhere. issued.