First layoffs, then cut costs! Musk helps Twitter save $1 billion a year!

Musk has instructed Twitter to save $1 billion a year in infrastructure costs, according to Reuters and sources, sparking concerns that Twitter could collapse if Musk takes over.

The "deep cuts plan" also includes cost savings of $1.5 million to $3 million from servers and cloud services.

Twitter did not immediately respond to a request for comment.

Professionals say Musk is "delusional"

The sources said significant infrastructure cuts could put Twitter's website and app at risk of crashing during key events when users rush to Twitter to consume and share information, increasing the risk of outages after major news breaks.

One source said the social media platform is exploring whether to cut additional server space to ensure Twitter can handle the high traffic, but Musk appears to be shrugging that off.

So some professionals described Musk's cost-cutting proposals as "delusional", adding that servers would easily crash when user traffic increased.

Teams at Twitter are racing to come up with a plan to achieve cost savings before a Nov. 7 deadline, according to people familiar with the matter. Some employees have been asked to work in the office every day of the week to meet the deadline, the sources said.

The cost cuts could also lead to reduced spending on Google's cloud services, the sources said.

A Google Cloud spokesperson declined to comment.

Twitter is looking for other ways to make money besides advertising, including "paywalled" videos and paid direct view messages, The New York Times reported, citing two people familiar with the matter and internal documents.

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