Musk orders Twitter to cut infrastructure costs by $1 bln -sources - Reuters.com

Nov 3 (Reuters) - Elon Musk has directed Twitter Inc's teams to find up to $1 cardinal successful yearly infrastructure outgo savings, according to 2 sources acquainted with the substance and an interior Slack connection reviewed by Reuters, raising concerns that Twitter could spell down during high-traffic events similar the U.S. midterm elections.

The institution is aiming to find betwixt $1.5 cardinal and $3 cardinal a time successful savings from servers and unreality services, said the Slack message, which referred to the task arsenic "Deep Cuts Plan."

Twitter is presently losing astir $3 cardinal a time "with each spending and gross considered," according to an interior papers reviewed by Reuters.

Twitter did not instantly respond to a petition for comment.

The steep infrastructure cuts could enactment the Twitter website and app astatine hazard of going down during captious events erstwhile users are rushing to Twitter to devour and stock information, specified arsenic during moments of situation oregon large governmental events, the sources said.

The societal media level is exploring whether to chopped other server abstraction that is kept to guarantee Twitter tin grip precocious traffic, 1 root said.

"(Musk) is consenting to present that hazard to conscionable these goals," the idiosyncratic said.

The 2nd root described the projected cuts arsenic "delusional," adding that erstwhile idiosyncratic postulation kicks up, the work tin neglect "in spectacular ways."

Teams crossed Twitter are racing to contiguous a program to execute the outgo savings by a Nov. 7 deadline, according to 1 of the sources and the Slack message. Some employees person been ordered to enactment successful the bureau each time of the week to conscionable the deadline, the root said.

Cost cuts could besides travel from reduced spending connected Google Cloud services, the root said.

A spokesperson for Google Cloud to declined to comment.

Reporting by Sheila Dang successful Dallas, Paresh Dave successful Oakland, Calif.,and Katie Paul successful Palo Alto, Calif.; Editing by Kenneth Li, Matthew Lewis and Richard Pullin

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