Elon Musk Says Ordering Twitter to Cut Infrastructure Costs by $1 Billion

Elon Musk has ordered Twitter teams to make up to $1 billion (about Rs. 8,300 crore) in annual infrastructure cost savings, according to two sources familiar with the matter and an internal Slack message reviewed by Reuters, raising concerns that the -Twitter may go down in time. high-traffic events like the US mid-term elections.

The company aims to earn between $1.5 million (about Rs. 12 crore) and $3 million (about Rs. 24 crore) per day from savings on servers and cloud services, said a Slack message, which called the project as “Deep Cutting. “. Edit.”

Twitter is currently losing about $3 million (roughly Rs. 24 crore) a day “when all expenses and revenue are taken into account,” according to an internal document reviewed by Reuters.

Twitter did not immediately respond to a request for comment.

Critical infrastructure cuts could put Twitter’s website and app at risk of going down during critical events when users flock to Twitter to feed and share information, such as times of crisis or major political events, the sources said.

The social network is looking into whether to cut more server space to ensure Twitter can handle the increased traffic, one source said.

“(Musk) is willing to take that risk to meet these goals,” the person said.

A second source described the proposed cuts as “tricky,” adding that when user overload begins, the service could fail in “dramatic ways.”

Teams across Twitter are scrambling to launch a plan to achieve cost savings by a Nov. 7 deadline, according to one of the sources and a Slack message. Some workers have been ordered to work in offices every day of the week to meet the deadline, the source said.

Cost reductions may also come from reduced spending on Google Cloud services, the source said.

A Google Cloud spokesperson declined to comment.

© Thomson Reuters 2022

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