Twitter, a far-left social networking site, is laying off 30% of its recruiting team amid sweeping layoffs in the tech industry and the prospect for Elon Musk to take over the business.
— @Ani (@FlemishAni) July 8, 2022
According to the Wall Street Journal:
Twitter Inc. TWTR 1.52% announced on Thursday that it had fired 30% of its talent acquisition team as it contends with escalating financial challenges and the possibility of Elon Musk taking over the company.
The corporation declared in May that it would be halting hiring and working to reduce costs, and the layoffs followed. The business is restructuring and decreasing its talent acquisition team in response to the changing business needs. Less than 100 employees are anticipated to be affected by the layoffs, which are only affecting the talent acquisition team, according to the firm.
In light of declining stock prices and worries about a recession, Twitter is the most recent Internet company to announce layoffs. While Unity Software Inc. stated last week that it would be laying off 4% of its workforce, Coinbase Global Inc. announced last month that it would be laying off 1,100 people, or 18% of its workforce.
Elon Musk, the CEO of SpaceX and Tesla, and Twitter are currently negotiating a potential $44 billion buyout.
In light of concerns that the agreement with Musk may be in jeopardy and ongoing conflicts between the parties about the prevalence of bot and spam accounts on the site, the price of Twitter’s stock fell by 4% today.
Musk, a “free speech absolutist” who calls himself, unveiled his takeover effort earlier this year. The Twitter board accepted Musk’s offer at the end of April, but the transaction has not yet been finalized.
Musk may be responsible for a $1 billion breakup charge if he backs out of the agreement due to the bots issue or for any other reason.