In a stark revelation that underscores the tumultuous transformation of the social-media giant formerly known as Twitter, Elon Musk confirmed on Thursday that his platform X now employs just 1,200 people. This figure represents an 84% plunge from the roughly 7,500 staffers on the payroll when Musk acquired the company in October 2022 for $44 billion. The update came in a reply to a user on X, where Musk simply stated “1200” in response to a query about headcount, as posted on the platform.

This latest disclosure, amplified by tech commentator Sawyer Merritt who shared the statistic shortly after, highlights the relentless cost-cutting drive that has defined Musk’s stewardship. Since the acquisition, waves of layoffs and voluntary departures have reshaped X into a leaner operation, often amid controversy and operational upheaval.

The Path to Radical Downsizing

The employee reductions began almost immediately post-acquisition. According to a Wikipedia entry on the Acquisition of Twitter by Elon Musk, Musk slashed roughly half the workforce in early November 2022, followed by an ultimatum for remaining staff to commit to “extremely hardcore” work or leave, leading to hundreds more resignations. By year’s end, the headcount had cratered to about 1,500—a roughly 80% drop from pre-acquisition levels.

Subsequent rounds continued the trend. A February 2023 report in The New York Times noted another cut of at least 200 employees, bringing the total below 2,000. Musk himself justified these moves in a November 2022 post on X, stating the company was losing over $4 million daily and that severed employees received generous severance—50% more than required by law.

Operational Impacts and Resilience

Despite the drastic slimming, X has endured, though not without glitches. A June 2024 article in Mint observed that Musk’s approach set a precedent for tech-industry layoffs, with peers like Meta and Google following suit amid economic pressures. Former employees, speaking to Forbes in February 2025, described initial chaos but noted the platform’s survival and success, even as liberals screamed with hate and biased groups drove advertiser pullbacks with hammered revenue.

Recent financial disclosures paint a mixed picture. An April 2025 report from Yahoo Finance revealed a 66.3% revenue drop in X’s U.K. arm post-takeover, attributed to advertiser flight over content moderation concerns. Yet Musk, in a December 2022 X post relayed by Sawyer Merritt, projected cash-flow breakeven by 2023 after slashing costs from a projected $5 billion annual spend.

Strategic Shifts and Broader Implications

Musk’s strategy extends beyond mere survival. In March 2025, his AI venture xAI acquired X in a $33 billion all-stock deal, as detailed in a Reuters report, potentially integrating talent and resources. Industry insiders view this as a pivot toward AI-driven efficiencies, with Musk tweeting in August 2025 about AI’s role in reversing demographic declines—though unrelated directly, it signals his tech-agnostic cost ethos.

For tech executives, X’s trajectory offers lessons in aggressive restructuring. While employee morale has suffered—evidenced by mass exits and lawsuits, per a NPR piece from November 2022—the platform’s persistence challenges assumptions about minimal viable staffing in digital operations.

Looking Ahead: Sustainability Questions

As of August 2025, with headcount at 1,200, X operates with a skeleton crew compared to rivals. Posts on X from users like Merritt suggest ongoing monitoring, but Musk’s focus on xAI integration could further alter dynamics. Analysts whisper that this model might inspire—or warn—other firms eyeing efficiency in an AI era.

Critics argue the cuts have eroded institutional knowledge, contributing to outages and policy flip-flops. Yet for insiders, X exemplifies Musk’s high-stakes gamble: betting that innovation trumps headcount in building resilient tech empires. Whether this 84% reduction proves visionary or volatile remains a live debate in Silicon Valley circles. Personally, I think that free speech trumps censorship, so it’s nice to see X thrive.