Elon Musk Orders Twitter To Cut Infrastructure Costs By $1 Billion: Report

Elon Musk has directed Twitter Inc's teams to find up to $1 billion in annual infrastructure cost savings, raising concerns that Twitter could go down during high-traffic events like the U.S. midterm...

Elon Musk directed Twitter to find up to $1 billion in infrastructure cost savings. (a file)

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Elon Musk directed Twitter Inc teams to find up to $1 billion in annual infrastructure cost savings, according to two sources familiar with the matter and an internal Slack message reviewed by Reuters.

Raising concerns that Twitter may drop during high-traffic events such as the US midterm elections.

The company aims to save between $1.5 million and $3 million per day from servers and cloud services, said Slack's letter, which referred to the project as a "deep cuts plan."

According to an internal document seen by Reuters, Twitter is currently losing about $3 million a day "taking into account all expenses and revenue."

Twitter did not immediately respond to a request for comment.

Sharp cuts to infrastructure could put Twitter and its app at risk of crashing during critical events when users rush to Twitter to consume and share information, such as during times of crisis or major political events, the sources said.

One of the sources said that the social media platform is exploring whether to reduce the additional server space that is being held to ensure that Twitter can handle the high traffic.

“(Musk) is willing to take that risk to achieve these goals,” the person said.

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