During Elon Musk’s attempt to acquire the money-losing, bastion of progressive fake news social media platform Twitter, the Tesla and Space X CEO has made it clear that things would necessarily have to change if he is successful.
Elon will become the new CEO after his $44 billion purchase of the company is finalized. Musk’s management style is reportedly very direct. He is known to fire any defectors in the ranks, at the drop of a hat.
It appears that current Twitter CEO Parag Agrawal understands that urgent housekeeping needs to take place prior to Musk’s arrival thus two of the company’s top leaders are no longer on the payroll.
Agrawal sent a memo to Twitter staff Thursday announcing the firings and other cost-reduction measures, including a pause on new hires.
The Verge reported a copy of the email Agrawal sent, which does not indicate there will be any layoffs yet.
“Kayvon Beykpour, Twitter’s general manager, is leaving and will be replaced by Jay Sullivan,”
“Mr. Sullivan is currently the interim general manager of the consumer product. Bruce Falck, Twitter’s general manager for revenue, is also departing the company.”
Beykpour said in a statement on Twitter. “The truth is that this isn’t how and when I imagined leaving Twitter, and this wasn’t my decision,” he added, “Parag asked me to leave after letting me know that he wants to take the team in a different direction.”
The truth is that this isn’t how and when I imagined leaving Twitter, and this wasn’t my decision. Parag asked me to leave after letting me know that he wants to take the team in a different direction.
— Kayvon Beykpour (@kayvz) May 12, 2022
The memo also reportedly said Twitter has put a freeze on most new hiring and is cutting back on spending in part due to the company not achieving key growth metrics.
The New York Times previously reported that Musk plans to hire approximately 3,600 employees over a period of time but not before dismissing up to 1,000 current employees.
“Musk anticipates Twitter’s total number of users will grow from 217 million at the end of last year to nearly 600 million in 2025 and 931 million six years from now,” the report said. “Most of that growth will come from Twitter’s ad-supported business, including Twitter Blue, for which users pay $3 a month to customize their experience on the app. According to the pitch deck, Mr. Musk expects 69 million users of Twitter Blue by 2025 and 159 million in 2028.”
While it appears that the acquisition is pretty much a done deal, leftists who vehemently reject the idea of Twitter changing into a free speech platform, including allowing former President Donald Trump’s account to be re-instated, are hoping the reports that the U.S. government has opened an investigation into Musk’s business dealings surrounding his purchase of Twitter are true, possibly killing the deal.
“The Securities and Exchange Commission is probing Mr. Musk’s tardy submission of a public form that investors must file when they buy more than 5% of a company’s shares,” The Wall Street Journal reported. “The disclosure functions as an early sign to shareholders and companies that a significant investor could seek to control or influence a company.”
The report said that Musk’s April 4 disclosure filing was at least 10 days late, a move that is believed to have saved him more than $140 million because share prices could have been higher if the public knew about his ownership of 5% of the company.
My guess is the deal will go through and over time Twitter will settle into its lane, as one of many social media platforms in the increasingly crowded space.