Elon Musk denies reports he plans to fire Twitter employees to avoid paying out stock grants

Update (October 31, 1:50 am ET): Elon Musk denies reports that he plans to terminate employees to avoid paying out their stock grants.

What you need to know

• Elon Musk has reportedly ordered employees to be laid off at Twitter.
• The company-wide layoffs are rumored to take place before November 1.
• An official announcement is said to be issued prior to that date.

Heads apparently began to roll as soon as Elon Musk took the reins of Twitter a few days ago, starting with the top executives, but the list might grow in the coming days. The new owner of Twitter has reportedly ordered a company-wide layoff.

According to The New York Times, Musk has told managers to draw up lists of employees to be terminated. The layoffs are reportedly happening before November 1, which is supposed to be the date when employees will receive their stock grants. The Times notes that this type of grant accounts for a big portion of employees' salaries.

Twitter did not immediately respond to Android Central's request for comment. Previously, the SpaceX and Tesla CEO reportedly told staff members that he would terminate most of them once he officially takes the reins, but not as many as 75% of Twitter's total workforce, contrary to speculations.

The micro-blogging platform currently employs 7,500 people. Musk's rumored plan to reduce that headcount is viewed as a move to avoid paying outgoing employees their stock grants.

Musk reportedly fired the top brasses at Twitter when he assumed ownership of the company. According to reports, CEO Parag Agrawal, CFO Ned Segal, chief policy officer Vijaya Gadde, and general counsel Sean Edgett were fired on Thursday evening. The $44 billion deal was supposedly closed on Friday. Agrawal and Segal were purportedly escorted by security out of Twitter's San Francisco headquarters.

While Musk has been vocal about his plans for Twitter once he officially takes control of the company, including changing the service's content moderation policies, he hasn't shared plans for its workforce. That said, the latest report may paint a gloomy picture for many of the firm's employees.

Update

Elon Musk has responded to a report in The New York Times that he intends to fire employees in order to avoid paying out stock grants before November 1.

Musk called the report false in response to a tweet containing the NYT link to it.

Twitter has yet to respond to Android Central's request for comment.