Elon Musk’s X May Cut Engineering Jobs Amid Ongoing Restructuring

Since Elon Musk’s $44 billion acquisition of Twitter, now rebranded as X, the platform has seen multiple rounds of layoffs and major structural changes. Reports now indicate that X may announce yet another round of job cuts, which could primarily impact the engineering department. This latest wave of layoffs aligns with Musk’s ongoing restructuring efforts as he works to reshape X, focusing on cost reduction and operational efficiency.

A recent report by The Verge, citing anonymous sources from the workplace forum Blind, suggests the potential for imminent layoffs within X. Although the exact number of affected employees is not yet known, this reduction may largely affect engineering roles, according to an additional report by Benzinga.

These new layoffs follow an unusual request made two months ago, in which X employees were asked to submit one-page summaries detailing their contributions to the company. However, it remains unconfirmed whether these reports influenced the current decision.

This restructuring comes during a period of financial strain for X. Fidelity, one of the investors involved in Musk’s acquisition, recently reduced X’s valuation to below $10 billion, highlighting the significant decline from its initial purchase price. Musk’s decision to reduce Twitter’s workforce by approximately 85% after the acquisition raised industry-wide concerns about the platform's long-term stability. The drop in valuation adds to these concerns, especially as X faces challenges in a rapidly evolving social media landscape.

This isn’t Musk’s first round of substantial layoffs across his companies; earlier this year, Tesla also cut 14% of its workforce. Musk’s management approach emphasizes aggressive cost-cutting, often at the expense of employee retention. As X moves forward with potential layoffs, both employees and industry analysts are keeping a close watch on the platform’s future and its ability to maintain stability amid these sweeping changes.