Elon Musk Orders Twitter to Cut infrastructure Costs by $1 Billion: Report

(CTN News) – According to two people familiar with the situation and an internal Slack message examined by Reuters, Elon Musk has instructed Twitter Inc.’s teams to find up to $1 billion in annual infrastructure cost savings.

This raises concerns that Twitter could go offline during high-traffic events like the U.S. midterm elections.

According to the Slack thread, the corporation is looking to save between $1.5 million and $3 million per day on servers and cloud services. The effort is known as the “Deep Cuts Plan.”

According to an internal memo accessed by NYTimes, Twitter is now losing around $3 million per day “with all expenses and income considered.”

A request for comment from Twitter did not immediately get a response.

In times of crisis or significant political events, when users are racing to Twitter to receive and share information, the sources added, the drastic infrastructure changes might put Twitter’s website and app at danger of falling down.

According to a source, the social media network is considering whether to reduce the additional server space preserved to ensure Twitter can manage excessive traffic.

The individual said, “(Elon Musk) is prepared to incur that risk to attain these aims.”

The second source called the cutbacks “delusional,” noting that the site may crash “in dramatic ways” when user traffic picks up.

According to one of the individuals and the Slack post, teams all around Twitter are vying to propose a strategy to realize the cost reductions by a deadline of Nov. 7. According to the source, some staff have been told to come into the office every day of the week to fulfil the deadline.

According to the source, reduced expenditures on Google Cloud services may also result in cost savings.

A Google Cloud representative refused to comment.

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