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Musk to gut Twitter infrastructure, cut costs by $1B annually

Reducing servers and cloud services risks outages during peak traffic times.

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Enlarge (credit: NurPhoto / Contributor | NurPhoto)

With Twitter losing $3 million per day, Elon Musk has ordered whatever Twitter staff he has left to start making up the difference by cutting Twitter infrastructure costs by $1.5 to $3 million per day. Musk is hoping to save $1 billion in annual costs in what Reuters reported has been dubbed Twitter’s “Deep Cuts Plan,” part of Musk’s ongoing scramble to turn Twitter profits around, seemingly even if it risks platform outages during high-traffic times.

Twitter is not commenting publicly yet on the Deep Cuts Plan, but Musk tweeted Friday morning to express how “extremely messed up” he thinks Twitter’s ad revenue loss is. Many major brands, including Cheerios and Audi, have paused advertising on Twitter, Reuters reported. Both brands told Reuters they would continue to evaluate the situation at Twitter before resuming.

“Twitter has had a massive drop in revenue, due to activist groups pressuring advertisers, even though nothing has changed with content moderation, and we did everything we could to appease the activists,” Musk tweeted. “Extremely messed up! They’re trying to destroy free speech in America.”

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