Micro-blogging platform Twitter has disclosed that the company has no intention to lay off staff, but would continue to restructure the business as some organizational changes will take place as it heads into a legal battle with Tesla CEO Elon Musk over the potential sale of the platform.
This is coming after employees at the company expressed concerns after Elon Musk disclosed that when he takes over the company, he has a preference for cutting headcount moderation and other costs, decreasing content creation as well as limiting remote work.
However, the company revealed in May that it would pause hiring and review all existing job offers to determine whether an employee should be called back or not. Twitter CEO Parag Agrawal further revealed that Twitter is currently on hold from hiring and the company will also pause in spending in most areas.
Tekedia Mini-MBA edition 14 (June 3 – Sept 2, 2024) begins registrations; get massive discounts with early registration here.
Tekedia AI in Business Masterclass opens registrations here.
Join Tekedia Capital Syndicate and invest in Africa’s finest startups here.
In his words, “We are not planning company-wide layoffs, but leaders will continue making changes to their organizations to improve efficiencies as needed. Some have been asking why a lame-duck CEO would make these changes if we are getting acquired anyway. While I expect the deal to close, we need to be prepared for all scenarios and always do what is right for Twitter”.
Last month, the company revealed its plans to retain employees by offering them packages. It however disclosed that it is losing workers at a slightly higher rate than in normal economic times. The company further disclosed its plan to monitor employee turnover to ensure that they quickly take care of areas that call for concern, and help mitigate the problem where possible.
As Twitter heads into a legal battle with Elon Musk, in its lawsuit tendered at the Delaware Chancery Court, the company asserts that Musk refused to honor his obligations to Twitter and its stockholders because he signed a deal that no longer suits his interest.
Recall that part of Elon Musk’s argument for opting out of the deal was that Twitter breached the agreement when it laid-off two of its top managers and also laid off a third of its talent acquisition team.
However, in its lawsuit, Twitter disclosed that communications from Musk started shortly after the deal was signed showing his concerns about headcount, expense growth, and his desire for more aggressive cost-cutting.
The company revealed that Musk refused to approve or even discuss the company’s proposed retention programs for key employees. However, as the matter is currently in court, there are still doubts as to whether Musk will eventually take over the micro-blogging platform.
Employees at the company are worried about the whole scenario due to Musk’s plan to cut headcount and limit remote work in the company. Recall that Musk had earlier disclosed that any cost exceeding Twitter’s revenue is not a good situation and so he will be forced to do some rationalization of headcount and expenses to have revenue greater than cost.
The future of employees at Twitter however remains uncertain despite the CEO assuring them of no intention to lay off staff members. He however assured them that no lay-off will happen at this time although he can’t tell the direction Elon Musk would go if he eventually decides to take over the company.