The storm of layoffs on Twitter continues even though they have lost thousands of employees. Reportedly, the company owned by Elon Musk has just laid off 40 employees.
According to a report by The Information, Twitter has laid off 40 employees from its data science and engineering divisions. The news was confirmed by a source familiar with the issue to Gizmodo.
The source added that the teams most affected were product software engineering, monetization, and advertising prediction, as quoted from Gizmodo, Saturday (7/1/2023).
The advertising prediction team is tasked with using machine learning technology to determine the best way to target ads to Twitter users.
The team is also tasked with developing ad algorithms. According to The Information, without this expertise, Twitter's ability to optimize ads and generate revenue could be threatened.
Advertising itself is an important part of Twitter's revenue, especially since being bought by Elon Musk they have been left behind by several big advertisers. Giants such as General Motors and United Airlines temporarily stopped advertising on Twitter over concerns about platform moderation.
Overall, Twitter's revenue from advertising in the United States missed estimates by 80%. The company with the bird logo even has to correct its revenue projection several times.
To overcome the income from ads that drag, Twitter began to do a variety of ways. One of them is by re-allowing political advertisements on Twitter, even though political advertisements have been banned four years ago.
Twitter itself is estimated to have lost three quarters of a total of 7,500 employees. At the end of December 2022, a source familiar with the company's internals said Twitter currently has around 1,750 permanent employees and around 1,000 contract employees.