The team is responsible for working with external advisory bodies like the Twitter Trust and Safety Council. It also handled human rights initiatives to guard vulnerable users and engaged in transparency efforts.
The group collaborated with government agencies and ensured compliance with global regulations.
The source said the public policy team had over 60 staffers before Musk’s acquisition of twitter.
Musk slashed over half of Twitter's workforce last month, soon after taking over the company.
He then forced out more employees primarily by implementing an ultimatum to work “hardcore” or leave the firm.
Additional layoffs with hundreds of job cuts continued as Musk has been looking for ways to cut costs, which included top engineering and legal talent.
Over 100 ex-Twitter employees have filed demands for arbitration or are participating in proposed class action suits linked to the layoffs.
The latest layoffs wave might exacerbate Twitter’s ability to protect key users and follow regulations amid mounting scrutiny of the platform after Musk’s takeover.
In a meeting last month, Thierry Breton, a top EU official, cautioned Musk that the platform should take considerable efforts to comply with EU content moderation laws.
He warned that European regulators will be strictly monitoring compliance.
Musk has agreed to permit EU authorities to "stress test" the social media platform for conformity with Europe's new platform rule, the Digital Services Act, early next year.
Twitter is also dealing with the exodus of many of its advertisers, who provide the majority of the company's revenue.
As of December 17, 72 of the top 100 advertisers on Twitter had halted their ad campaigns on the service.
Meanwhile, Musk may be considering hiring someone else to lead the social media site after Twitter users voted over the weekend for him to bow down as CEO.
Musk announced this week that he will resign from the top role “as soon as I find someone foolish enough to take the job!”