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Last week, Twitter laid off 30% of its talent acquisition team. This comes after the company instituted a hiring freeze and as the deal with Elon Musk fell through.
A spokesperson for Twitter confirmed the layoffs to the SF Gate and TechCrunch, but they did not specify the exact number of employees let go. The employees will receive severance packages.
The SF Gate reported:
A company spokesperson told SFGATE that the layoffs are a way for the company to refocus its business needs during a lean period. As the broader tech industry undergoes intense headwinds, Twitter already announced a hiring pause in May, with a few key exceptions for “critical” positions.
The social media platform has also undergone rapid whiplash within its executive ranks in recent months, with two Twitter executives reportedly being asked by CEO Parag Agrawal to leave the company in May, just months after being promoted. (One of the executives, general manager of consumer product Kayvon Beykpour, departed the company while on paternity leave.)
TechCrunch also reported:
Hiring freezes aren’t out of the ordinary in the midst of massive acquisition deals, but aside from Twitter’s impending $44 billion takeover by Elon Musk, the not-particularly-profitable social platform has found itself in a precarious economic period. It’s estimated that over 30,000 tech workers have been laid off in the last two months, and social networks aren’t immune to the market downturn. Competitors like Snap and Meta have also taken precautionary measures to manage their overhead in a time of economic upheaval. Just last week, Meta CEO Mark Zuckerberg told employees that they should prepare to do more work with fewer resources.
Twitter’s executives have also witnessed some serious reshuffling since Parag Agrawal took over for Jack Dorsey as CEO. After the deal with Elon Musk was announced, Agrawal let go of consumer GM Keyvon Beykpour and revenue product lead, Bruce Falck.
The Raging Patriot previously reported on the Twitter deal that Elon Musk was set to buy.
However, he just announced he will not be buying Twitter and is formally ending the deal.
“Mr. Musk is terminating the Merger Agreement because Twitter is in material breach of multiple provisions of that Agreement, appears to have made false and misleading representations upon which Mr. Musk relied when entering into the Merger Agreement, and is likely to suffer a Company Material Adverse Effect,” Musk’s lawyers wrote in a letter to Twitter’s Chief Legal Officer Vijaya Gadde.
Twitter now says they are going to sue Musk for not going through with the deal.
The Associated Press said, “Twitter could have pushed for a $1 billion breakup fee that Musk agreed to pay under these circumstances. Instead, it looks ready to fight to complete the purchase, which the company’s board has approved and CEO Parag Agrawal has insisted he wants to consummate.”
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