SAN FRANCISCO – Twitter is halting hiring and shedding two senior leaders as it awaits a pending acquisition of Elon Musk.
The company is pausing most hires and fills, except for “business-critical” roles, and reducing other non-labor costs, Twitter spokeswoman Catherine Hill said in a statement to CNN Business on Thursday.
Additionally, Twitter consumer general manager Kayvon Beykpour and revenue product lead Bruce Falck announced their departures from the company on Twitter on Thursday. Hill confirmed the departures.
Beykpour, a seven-year veteran of the company, he said your departure was not your decision. “It wasn’t like that and when I imagined leaving Twitter… [Twitter CEO Parag Agrawal] asked me to leave after informing me that he wants to take the team in a different direction,” he said.
The company did not respond to a request for comment on whether the hiring freeze and executive departures are related to the Musk acquisition, which is expected to close later this year, or the broader tech market downturn. Social media rival Meta also recently announced plans to slow down hiring as it grapples with slowing growth.
Thursday’s announcement is likely to add to the sense of uncertainty among some within the company since Musk announced his impressive $44 billion takeover deal last month.
There has been speculation that the acquisition of Musk, if completed, could lead to layoffs or cost cuts in certain parts of the company as he restructures it to focus on his own goals for the platform, such as growing its subscription business. Many experts also expect Musk, who has previously said he lacks confidence in Twitter’s management team, to shake up the company’s leadership, including the possibility of firing its less-than-a-year CEO Agrawal.
That said, the Musk acquisition deal is not yet closed and could still fall apart. There are still some doubts as to whether the decline in Tesla’s stock last month could negatively impact its ability to fund the deal. Twitter shares were trading around $46 as of Thursday afternoon, well below Musk’s offer price of $54.20 a share, suggesting some investor skepticism about the likelihood of the deal closing. .