Here’s Twitter CEO Parag Agrawal’s memo on executive layoffs and a hiring freeze

Here’s Twitter CEO Parag Agrawal’s memo on executive layoffs and a hiring freeze

On Thursday, Twitter CEO Parag Agrawal announced a series of major restructurings within the company in an email to employees, including the firing of Consumer Product Leader Kayvon Beykpour and Head of Revenue Product Bruce Falck. The company is pausing most hiring and cutting spending in most areas, although it has no plans for layoffs at this time.

It’s a strange, uneasy moment for Twitter as the company prepares to close its $44 billion acquisition of Elon Musk later this fall. However, it’s not entirely clear why Agrawal made these changes now, or how they relate to Musk’s acquisition. Twitter’s new head of product is Jay Sullivan, an ex-Facebook director who joined in November. The company is now beginning a search for a new head of revenue product to replace Falck.

The edge received the email Agrawal had sent to staff about the changes. Here it is in full:


Team,

Building Twitter and serving our customers around the world is important yesterday, today and tomorrow. Our purpose is existential. In this time of change, it’s critical that we continue to strengthen our work through increased accountability and execution to make Twitter what it can be. The priorities and decisions we make now will not only strengthen our navigation through this period, but also the longer-term success of Twitter, which is close to my heart. Some changes will happen to us and some we will drive. Some of these changes are difficult, but they are right for Twitter and its future.

guide

Having the right leaders at the right time is crucial. Jay Sullivan, currently interim GM of Bluebird, has shown this impressively. His product vision, his ability to inspire, act quickly and drive change is what Twitter needs now and in the future. So I decided to make Jay the permanent GM of Bluebird. With this change Kayvon Beykpour will leave Twitter. Kayvon has been an amazing leader and force at Twitter over the years with his founding mentality and deep passion for service. Under his leadership, our product has evolved and grown significantly – I know I speak for all of us when I say we are deeply grateful for its tremendous impact.

I’ve also gotten a lot closer to the sales product work in the past few months and I believe we need to make a leadership change here as well. Bruce Falk will leave Twitter and we will open the search for a new GM of Goldbird. Joining Twitter at a critical time, Bruce has been a strong contributor, leader and supporter of the work on Yield Products and our purpose. Under his leadership, we rebuilt our ad server and laid the foundation to develop our ads business in a more performance-oriented manner. In the meantime, the Goldbird org is logging on Jay Sullivan. His leadership will be very meaningful through this transition.

Please join my thanks to Kayvon and Bruce for all they have done for Twitter.

Current Environment

At the onset of the pandemic in 2020, a decision was made to invest aggressively to achieve large audience and revenue growth, and as a company we have not achieved any intermediate milestones that enable confidence in these goals. More recently, the global macroeconomic environment has deteriorated, the war in Ukraine has impacted and may continue to impact our results. Many other companies have experienced a similar effect. And, of course, we’re in the middle of an acquisition and don’t yet know when it will close. To lead the organization responsibly while sharpening our roadmaps and our work, we must remain conscious of our teams, attitudes and costs.

setting

Starting this week, we are pausing most hiring and replacements, except for mission-critical roles, which are determined by employees in collaboration with their HRBPs. We will also review all enhanced offers to determine if they are critical and those that should be withdrawn. We are not planning any company-wide layoffs, but leaders will continue to make changes to their organizations to improve efficiencies as needed. As always, performance management will remain a priority at all levels at this time to ensure we have the strongest teams possible.

budgeting

We must also reduce non-labor costs to ensure we operate responsibly and efficiently. We reduce contractor and consulting spend, travel and events, marketing, our real estate footprint, on-premises infrastructure and public cloud spend, and other operational costs. Please continue to treat Twitter’s resources as your own and stay strictly within your budget, prioritizing what matters most.

As promised, I will continue to communicate frequently and directly with all of you as we continue to move forward. Next week we will be holding a virtual offsite with our Global Leadership Team (GLT) to further drive cohesion and focus and strengthen our collective plans to best serve you all. We will share with you the results of this meeting.

While we’re in the midst of a lot of changes right now, historically, Twitter often is. What remains is our purpose, the meaning of Twitter and the importance of our work and how we come together. Thank you for your guidance, your focus, and your support for one another.

parag

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