Elon Musk has directed Twitter to cut infrastructure costs by $1 billion
According to two sources familiar with the matter and an internal Slack message reviewed by Reuters, Elon Musk has directed the teams at Twitter Inc. to find up to $1 billion in annual infrastructure cost savings. This has raised concerns that Twitter could go down during high-traffic events such as the midterm elections in the United States.
According to a message posted on Slack, which referred to the initiative as the “Deep Cuts Plan,” the business has set a goal to reduce its expenditures on servers and cloud services by between $1.5 million and $3 million every single day.
Twitter is currently losing about $3 million a day “with all spending and revenue considered,” according to an internal document reviewed by Reuters.
According to the insiders, the severe changes to the infrastructure might put the Twitter website and app at risk of falling down during crucial events when people are racing to Twitter to absorb and exchange information. These events include times of crisis or important political events. The social media network is looking into whether or not it would be possible to cut down on the extra server space that is kept to make sure Twitter can handle a lot of traffic.
“(Musk) is willing to introduce that risk to meet these goals,” the person said.
The second source described the proposed cuts as “delusional,” adding that when user traffic kicks up, the service can fail “in spectacular ways.”
According to one of the individuals and the message that was posted on Slack, teams from all over Twitter are working feverishly to meet the November 7 deadline for presenting a plan to achieve cost savings. According to the source, in order to meet the deadline, certain workers have been given the instruction to report to the office each and every day of the week. According to the source, one way to save money could be to spend less on services from Google Cloud.