Twitter announces hiring freezes and cost cuts ahead of Musk acquisition

On Thursday, Twitter Inc. CEO Parag Agrawal announced hiring freezes and other cost-cutting efforts, a reflection of the company’s uncertainty pending the $ 44 billion ($ 704 billion) acquisition of Elon Musk. of rupees).

The social media company will not be hiring new employees and may return offers already open, according to an internal note obtained by Bloomberg.

Some exceptions will be made for business-critical roles, as determined by Twitter’s leadership. The company is also retiring costs such as travel, consulting and marketing, according to the note.

Two of Twitter’s top leaders are also leaving. Kayvon Beykpour, head of consumer product, and Bruce Falck, head of revenue product, were both invited to leave the company from Agrawal, the two executives said in separate public posts.

Agrawal said global events, including the war in Ukraine and the supply chain crisis, have hurt Twitter’s business and may continue to do so.

The company is not planning large job cuts, “but leaders will continue to make changes in their organizations to improve efficiency as needed,” Agrawal wrote.

“At the start of the pandemic in 2020, the decision was made to invest aggressively to drive large audience and revenue growth and, as a company, we have not achieved milestones that allow for confidence in these goals,” he said. Agrawal.

“To responsibly manage the organization as we improve our roadmaps and work, we must continue to be intentional about our teams, hiring and costs.”

Following the departure of Beykpour and Falck, Jay Sullivan will assume the role of product manager and interim revenue manager.

Sullivan talked about refocusing the company on fewer projects during recent team and company meetings, according to a person familiar with the matter.

Beykpour, who is on paternity leave, said on Twitter that it’s not how she imagined leaving.

“Parag asked me to leave after letting me know he wants to take the team in a different direction,” he said.

Falck tweeted that he was also fired, so he later deleted the post. A Twitter spokesperson did not respond to a request for comment.

The changes reflect Twitter’s current state of limbo pending a new owner.

Musk, the richest man in the world and CEO of Tesla Inc., agreed to buy the company for $ 44 billion last month, but the deal may not be finalized for months, as Musk is still working to secure the financing. On Tuesday, he suggested the deal could still fall apart.

This has left Twitter employees in trouble, as many don’t know if the projects or teams they’re working on will get priority under the new leadership.

Twitter will move some existing employees away from long-term projects to focus on core growth for its core app instead, according to two people familiar with the matter.

It’s unclear which projects will be most affected, but long-term Twitter efforts include things like audio spaces, NFTs, creator efforts, and newsletters.

The company is not alone in cutting expenses; Larger competitor Meta Platforms Inc. also recently said it will cut investment.

Now reading: Apple is no longer the most valuable company in the world