According to Bloomberg News, the chief executive officer of Twitter Inc. Parag Agrawal, announced that there would be a freeze in hiring followed by cost-cutting measures Thursday, which reflects the company’s uncertain state as it waits for a $44 billion takeover by Elon Musk.
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The social media microblogging site will not recruit new employees and is likely to cancel offers already out, as per an internal memo that Bloomberg got access to. However, there will be few exceptions for critical roles in the business and solely decided upon by Twitter leadership. The company is cutting costs like consulting, marketing, and travel.
Two of the top leaders of Twitter are also leaving. Kayvon Beykpour, the head of consumer products and in charge of revenue product, Bruce Falck, was asked by Agrawal to leave the company, as stated by the two executives separately in separate posts publicly.
As stated by Agrawal, global events that include the ongoing Ukraine war, and disruption in supply chain logistics, have adversely impacted the business of Twitter and are likely to continue to do so. Although the company is not opting for broader cuts in jobs, leaders continue to make changes to their organizations to improve the efficiencies as required, as written by Agrawal.
At the beginning of the 2020 pandemic, aggressively investing was made to deliver bigger growth in both revenue and audience. But as a company, they did not hit the milestone that would have allowed their confidence to surge in achieving the goals. To manage responsibly about the organization as they sharpen the roadmaps and their work, they need to carry on to be intentional about costs, teams, and recruitment said, Agrawal.
Bloomberg News reports that following the exit of Falck and Beykpour, Jay Sullivan will now take over as product head and interim revenue head. Sullivan has spoken about refocusing the company on projects that are not many during the recent team and company meetings, as per an individual aware of the matter.
Beykpour is on paternity leave and has stated on Twitter that this is not the way he had imagined leaving. Falck said as well that he was fired but deleted the post later. A spokesperson from Twitter failed to respond to a request when asked to comment.
The changes that are taking place only reflect the current state of Twitter, as it is waiting for a new owner. Elon Musk, the richest man globally and chief executive officer of Tesla Inc, agreed to buy Twitter for $44 billion last month. However, likely, the deal may not be finalized for months together, as Musk is still trying to arrange to fund. On Tuesday, he revealed that the deal might fall apart as well.
This has left the employees of Twitter in a lurch and away from long-term projects. They have been forced to focus on the core growth for the main app, as per two individuals familiar with the matter.
