Musk's Twitter Cost Cut Plot Could Impact Google Cloud Services As He Orders To Cut Infra Costs By $1B
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- Tesla Inc (NASDAQ:TSLA) CEO Elon Musk has ordered Twitter Inc's teams to find up to $1 billion in annual infrastructure cost savings raising concerns that Twitter could go down during high-traffic events like the U.S. midterm elections.
- Twitter must find between $1.5 million - $3 million a day in savings from servers and cloud services, Reuters reported citing Muck's Slack message, which referred to the project as the "Deep Cuts Plan."
- Also Read: Twitter Blue Members To Lose Access To Ad-Free Articles As Musk Revamps Business Model Post Takeover
- Twitter currently lost about $3 million a day "with all spending and revenue considered," according to an internal document.
- The steep infrastructure cuts could put the Twitter website and app at risk of going down during critical events when users rush to Twitter to consume and share information.
- Twitter weighed whether to cut extra server space that helped ensure Twitter could handle high traffic.
- Musk is ready to introduce that risk to meet these goals.
- Teams across Twitter battled to present a plan to achieve cost savings by a November 7 deadline.
- Cost cuts could also come from reduced spending on Alphabet Inc (NASDAQ:GOOG) (NASDAQ:GOOGL) Google Cloud services.
- Earlier news reports suggested Musk plans to eliminate 3,700 jobs, or 50% of the workforce, at Twitter to cut costs.
- Photo by Clker-Free-Vector-Images from Pixabay