Social networking giant Twitter has reportedly fired two of its top managers and halted hiring as part of an efficiency drive as the company prepares for its $44 billion planned takeover by Tesla CEO Elon Musk.
The company confirmed the departure of Kayvon Beykpour, the general manager, and Bruce Falck, head of product and revenue, and stated that it will only be hiring for business-critical roles.
The social media firm further stated that it will be cutting down on non-labor costs to make sure that it is efficient and responsible.
Both Beykpour and Falck have also confirmed that CEO Parag Agrawal gave them the push.
In a tweet, Beykpour, who was still on paternity leave from the company, wrote that Parag asked him to leave after telling him that he wishes to take the team in a different direction.
In a memo that was sent to employees by Twitter, Agrawal wrote that the firm was not able to hit its growth and revenue milestones after having started an aggressive investment campaign to increase its user base as well as revenue.
He added that the company needs to continue being intentional about its costs, teams, and hiring.
Shares of Twitter plunged 3% on Thursday, taking the price of each share $10 below Musk’s offer of $54.
Many believe that Agrawal’s position itself will be under threat once the takeover is completed.
Billionaire Elon Musk, who is the world’s richest man on paper, has been working aggressively to secure extra funding for the planned deal after it was made public last month, to lessen his dependence on Tesla stock to pay the agreed price.
High-profile investors, like Larry Ellison, co-founder of Oracle, have also offered to provide over $7 billion in funding. Meanwhile, Prince Alwaleed bin Talal of Saudi Arabia is believed to be interested in rolling his current investment in Twitter into Musk’s buyout.
Musk has been repeatedly stating that he wants the improve free speech on the platform while also decreasing the reliance on advertising and dealing with the increasing number of spam-distributing bots.