The social media giant flanked by acquisition controversy, Twitter Inc. insists that the company chose not to lay off employees but will undertake a business restructuring.
The matter was stated by the company in a filing, a day after Twitter acted to sue Tesla CEO Elon Musk.
Generally, other technology companies take action to either lay off or stop hiring to reduce the cost of spending.
Twitter was no exception when in May, the company acted to temporarily halt hiring to re -evaluate existing job offers to decide whether or not to lay off employees.
The recent surge in US inflation data readings, the highest 9.1% in 40 years, exacerbated the situation behind the issue of aggressive interest rate hikes as well as weak economic growth.
However, today Twitter confirmed that the company is opting for restructuring rather than layoffs.
It’s good news for Twitter employees who previously feared they would be laid off once Musk took over the company.
This is because Tesla is briskly laying off and laying off its employees after Musk expressed his bad ‘hunch’ about the prospects for economic growth.
Speaking of Musk, Twitter has also filed a lawsuit against the millionaire because he ‘canceled’ the company’s $ 44 billion acquisition deal in Delaware court.
Commenting on the incident, Musk is said to have violated the content of the agreement by acting to terminate the acquisition which in turn caused inconvenience to various parties and companies.
In his own defense, Musk stated that Twitter failed to comply with his request, and the matter led to a breach of contract by the company.
So far, Musk and Twitter are still pointing fingers at each other.
Meanwhile, as of this writing, Twitter shares are still green 7.90% (2.69) at $ 36.75 despite the equity market declining due to inflation data readings.
