Twitter is working on damage control after documents appeared suggesting Elon Musk wants to lay off most of the company’s staff.

Sources speaking to the Washington Post revealed the billionaire plans to cut nearly 75 per cent of Twitter’s employee base of 7,500 workers.

While job cuts had been expected regardless of the sale, the magnitude of Musk’s planned cuts are far more extreme than anything Twitter had planned.

In response to the report in the Post, Twitter’s main lawyer sent an email to all staff saying there were no plans for mass redundancies.

Twitter, like many tech companies, is trying to curb costs by reducing headcounts.

But experts, non-profits and even Twitter’s own staff have warned that pulling back investments on content moderation and data security could hurt Twitter and its users.

Wedbush analyst Dan Ives said: ‘A 75% headcount cut would indicate, at least out of the gates, stronger free cash flow and profitability, which would be attractive to investors looking to get in on the deal.

‘That said, you can’t cut your way to growth.’

After his initial $44 billion (£39 billion) bid to buy the platform in April, Musk backed out of the deal, claiming Twitter misrepresented the number of bot accounts on its platform.

However, the threat of legal action caused him to reconsider and now all signs point to Musk becoming Twitter’s owner.

Neither Twitter, nor representatives for Musk, have commented on the Washington Post’s report.

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