Twitter CEO says two executives will leave, hiring paused amid Musk takeover

Twitter CEO says two executives will leave, hiring paused amid Musk takeover

May 12 (Reuters) – Two senior Twitter executives (TWTR.N) who oversee the consumer and revenue divisions will leave the social media company, Chief Executive Officer Parag Agrawal told employees in a memo on Thursday, in one of the biggest upheavals at the company since billionaire Elon Musk announced he would buy it for $44 billion.

Agrawal said in the memo, which was seen by Reuters, that Twitter would pause most hiring and review all existing job openings to see if any “should be withdrawn”.

He attributed the decision in part to Twitter’s failure to meet user growth and revenue milestones to maintain confidence that it could meet the aggressive growth goals it set for 2020.

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“We must continue to be conscious of our teams, attitudes and costs,” Agrawal wrote.

The company was targeting $7.5 billion in annual revenue and 315 million daily users by the end of 2023, but withdrew those targets in its most recent earnings report.

Kayvon Beykpour, who ran Twitter’s consumer division, and Bruce Falck, who oversaw revenue, both tweeted Thursday that the departures weren’t their decisions.

“Parag asked me to leave after letting me know he wants to take the team in a different direction,” Beykpour tweeted, adding that he is still on Twitter’s paternity leave.

“I will clarify that I too was fired from (Parag),” Falck said, though he later apparently deleted the tweet.

Falck thanked his team in a tweet thread and updated his bio to say “unemployed”.

“We have been able to achieve the results that your hard work has enabled us to achieve – quarterly sales don’t lie. Google it,” he said.

Jay Sullivan, who ran the consumer division during Beykpour’s vacation, will become the permanent head of the division. He will also oversee the revenue team until a new head is appointed, Agrawal said in the memo.

Though no layoffs are planned, Agrawal said Twitter will reduce its spend on contractors, travel and marketing, and its real estate footprint.

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Reporting by Sheila Dang in Dallas; additional reporting by Katie Paul Editing by Chizu Nomiyama, Will Dunham, Nick Zieminski and Bernard Orr

Our standards: The Thomson Reuters Trust Principles.

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