Twitter announces freeze on hiring and departure of two senior leaders

As Elon Musk nears completion of his take over social media company.

Twitter, which agreed to sell itself to Musk for $44 billion last month, will suspend most hiring and backfilling this week, a spokesman said on Thursday. It is also cutting non-labor costs, the spokesman said.

Twitter’s general manager of consumer Kayvon Beykpour said in a tweet that he has been let go Provided by CEO Parag Agrawal. Bruce Falck, head of revenue products, is also leaving the company.

Both will be replaced by Jay Sullivan, who joined the company in November from Meta-owned Facebook as vice president of product.

Musk, who has been critical of Twitter’s leadership, moves on amid restructuring his takeover The company has pledged to relax its content moderation policies and increase revenue and product innovation.

The social media company has long-standing criticism Its growth has been sluggish compared with peers such as Meta, and activist investors such as Elliott Management have previously raised concerns about the leadership of its former CEO and co-founder Jack Dorsey.

Meanwhile, Musk’s progress has plunged the company into a time of uncertainty and division, with many employees worried about layoffs and a dramatic change in company culture when the deal closes.

Another challenge for the company is that Agrawal faces potential investor opposition at the company’s annual meeting later this month after two of its biggest shareholder advisers suggested voting against his compensation plan. $30.4 million compensation package.

Institutional Shareholder Services and Glass Lewis raised concerns about the design of the social media company’s compensation package, adding that “there is an inconsistency between CEO compensation and company performance”.

Relatively unknown on Wall Street but respected internally, Agrawal received a stock-based compensation promotion worth $12.5 million, as well as a raise from $600,000 to $1 million and other bonuses, totaling $30.4 million.

The two advisers also said that Egon Durban, co-CEO of venture capital group Silver Lake, should not return to Twitter’s board because he serves on too many other company boards. ISS said Durban served on seven public committees, compared with six last year.

Twitter’s board initially tried to implement poison pill Before agreeing last month to an offer of $54.20 per share in cash from Tesla’s CEO.

Musk is Twitter’s second-largest shareholder, giving him a lot of leverage at the annual meeting. If he succeeds in taking Twitter private, shareholder dissatisfaction with the board and compensation won’t matter. Still, Musk has been critical of the company’s leadership, especially the board of directors, writing on twitter If the deal goes through, he will drop their salaries to zero.

Agrawal is expected to remain in that role until the deal closes, according to people familiar with the matter. It’s unclear what steps Musk will take to change the company’s management when he takes office.

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