Twitter lays off workers, report contends Elon Musk’s bid is in jeopardy

Twitter Inc. said it is leaving 30% of its talent-acquisition team, or less than 100 people, as executives seek to cut costs while waiting for an acquisition by Elon Musk to go through.

The layoffs, announced Thursday, seemed inevitable after Twitter TWTR,
Chief Executive Parag Agrawal said in May the company would suspend hiring to shave costs.

Twitter executives are in the midst of restructuring the company and made the staff reduction to align with business needs, a source familiar with the company’s plans told MarketWatch. Twitter is pausing most hires and backfills, except for business-critical roles, the source said.

See also: Tech companies are shifting to layoffs after a huge ramp up in hiring

The layoffs come as Tesla Inc. TSLA,
Chief Executive Musk’s $44 billion deal has apparently hit a snag, according to a Washington Post report. Musk’s team has cooled talks after it concluded that Twitter’s figures on spam accounts are not verifiable, sources told the Post.

Earlier Thursday, Twitter said it removes 1 million spam accounts daily in a call with executives during a briefing intended to shed more light on the company’s fake and bot accounts. Musk has pointed to spam on the platform as a reason he is having second thoughts after signing a contract to purchase the social-media platform for more than $44 billion.

For more: Elon Musk doesn’t want to buy Twitter anymore, but Twitter can squeeze $1 billion — or more — out of him anyway

Twitter stock declined roughly 4% in after-hours trading Thursday following the Post’s report. Shares closed up 1.5% at $38.79, well short of the $54.20 price that Musk has agreed to pay.


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