Crap: It appears Elon Musk is going to make a liar of me. I said in a previous video on my YouTube channel that I believe the new owner of Twitter wouldn’t do employee layoffs until early 2023. So is Elon Musk preparing to layoff Twitter employees? According to a recent New York Times report yes. He wants to perform the layoffs before November 1st.
Why I Was Potentially Wrong About These Upcoming Layoffs?
In my experience companies don’t like to fire employees before the holidays. Because some employees tend to “self-delete” themselves. Why does that happen? Well, think about it this way: People tend to spend quite a bit of money during the holidays. You are traveling to meet up with family. Or if you stay at home you still need to purchase food for the holidays (which see more parties). Finally, there’s gifts which can be costly.
Thus, if you lose your job before the holidays you aren’t going to do much of that. Some may not do anything at all because they want to conserve their savings until they can find a new job. This monumental change affects not only the former employee but also their family. All of this stress pushes some employees to “self-delete.”
Why Is Elon Musk Preparing To Layoff Twitter Employees?
According to the New York Times article it appears the new owner wants the layoffs to happen before November 1st so he doesn’t have to pay out employee stock. As a former Twitter myself (I left in December 2020) we would get employee stock from either the Employee Stock Purchase Plan (ESPP) or Restricted Stock Units (RSU) depending on your employment. Those were paid out twice a year: April and November.
I already talked to one of my old coworkers still working at Twitter and he told me the ESPP stocks were in his account but were frozen. He couldn’t sell them. He also has RSU but they are nowhere need vested. And he’s not sure what’s going to happen to his RSU. With this information I see why Elon Musk is rushing to do layoffs because you have to be a current employee to get the stock payout. If you aren’t then the company refunds the money that was in your account and you get it in your final paycheck. (Except for RSU. If an employee leaves before they fully vest then they get nothing.)
I didn’t want to bother my old coworker since it’s the weekend and it’s a chaotic time at work but I will contact him Monday to see what happens at work. Once I get more information I’ll report back in a new article.