SAN FRANCISCO — Twitter CEO Parag Agrawal stated Thursday that he was pushing out two executives, imposing a hiring freeze and slashing different bills because the social media firm prepares for an acquisition later this yr by tech titan Elon Musk.
Agrawal, who was named CEO in November, introduced the sweeping modifications in an inside memo to workers. NBC News has seen a duplicate of the memo, and a Twitter consultant confirmed that the knowledge was correct.
“While we are in a ton of change right now, historically, Twitter often is,” Agrawal wrote within the memo.
He stated he had made the choice to switch Kayvon Beykpour as head of Twitter’s client division and Bruce Falk as head of income for the corporate. Both are leaving Twitter, the corporate stated.
In a assertion posted on Twitter, Beykpour stated: “This isn’t how and when I imagined leaving Twitter, and this wasn’t my decision. Parag asked me to leave after letting me know that he wants to take the team in a different direction.”
Another govt, Jay Sullivan, will head up Twitter’s client division and function the interim supervisor of income.
Twitter’s board of administrators final month accepted a proposal from Musk to buy the corporate for $44 billion. The deal is anticipated to turn into ultimate earlier than the tip of the yr, pending shareholder approval and different hurdles.
Musk is borrowing a lot of the cash he plans to make use of for the deal, leveraging Twitter’s personal belongings and saddling the corporate with new debt. He has instructed banks that he is already pondering of how to chop bills, together with govt pay, Reuters reported.
Agrawal nodded to the deal as one in all many unsure components in Twitter’s near-term future, together with a world financial slowdown and the warfare in Ukraine.
“And, of course, we are in the middle of an acquisition and we don’t yet know the timing of the close,” he wrote. “In order to responsibly manage the organization as we sharpen our roadmaps and our work, we need to continue to be intentional about our teams, hiring and costs.”
He wrote that the corporate was pausing most hiring aside from important roles and should pull again hiring gives it has prolonged.
“We are not planning company-wide layoffs, but leaders will continue making changes to their organizations to improve efficiencies as needed,” he wrote, including that there can be cuts in guide spending, journey, occasions, advertising and marketing, workplace area and different areas.
Ben Goggin contributed.