Twitter Pauses Hiring to cut Costs

Twitter Inc. has suspended hiring as the social media company plans to cut costs due to its struggles with the $44 billion acquisition by Elon Musk due to the global economic turmoil and the disruptions in the digital advertising market due to the war in Ukraine. Twitter CEO Parag Agrawal has made this announcement with the sudden resignation of two senior executives, according to an internal memo.

The Twitter move is followed by multiple companies cutting staff spending or slowing hiring in the tech industry in recent weeks. Robinhood Markets Inc said last month that as the investment platform grows rapidly after 2020, it will dismiss 9% of full-time employees and reduce additional double employment.

Meta Platforms Inc also slowed down hiring this month. Facebook announced it would slow investments. In the memo, Mr Agrawal said that Twitter will examine extended offers and rescind whichever it determines should be pulled back. He further said that Twitter is not planning companywide layoffs.

Technology companies recognize that the Covid-led digital ad surge started to ease and face factors such as rising inflation, supply chain disruptions, and the war in Ukraine. the growth in Covid-led digital ads is slowly declining and facing further pressure.