Elon Musk left the world buzzing when his plans to buy Twitter was announced back in May 2022. Now, as the pending deal continues to move forward, we’re seeing signs of potential fallout to come.
Crunchbase recently reported that Twitter laid off almost a third of its recruiting team in July. The social media giant let go of 30% of its talent acquisition team on July 7, amid a two-month-long hiring freeze.This is a move that joins more than 140 US tech companies that have initiated layoffs amid a market facing a recession.
Since the beginning of July, more than 30,000 U.S. tech workers have been laid off, including at Meta, Uber, and cryptocurrency companies. Additionally tech companies are putting a halt on hiring sprees after nearly three years. Both publicly-traded companies and smaller startups have informed their workers they’re pausing or slow down hiring, given the tumult that’s taken place in the public markets and toppled tech stock valuations.
This news is noteworthy since the economy is facing a significant downturn, and, in tandem Musk has previously stated he plans to make changes to the company once the $44 billion sale goes through. He said he wanted to purchase the publicly traded social media company is to amplify free speech online and eliminate bots. “Free speech is the bedrock of a functioning democracy, and Twitter is the digital town square where matters vital to the future of humanity are debated,” Musk said in April.
Since then, there’s been much back and fourth about the state of the sale, but it’s clear that the company is undergoing hiring changes.