Twitter, Inc. (NYSE: TWTR) has let go of 30% of the staff, or less than 100 people, in its talent acquisition team after suspending hiring two months ago to reduce costs, a report published by The Wall Street Journal said.
A company spokesman said, “In light of the hiring pause Twitter is reprioritizing the talent acquisition team, which includes recruiters, to ensure that it operates efficiently and responsibly.”
Twitter joins tech firms like Coinbase Global (NASDAQ: COIN) and Unity Software (NYSE: U) that have recently announced layoffs. Last week, Unity revealed plans to let go of 4% of its workforce, while, last month, Coinbase said that it would cut 1,100 or 18% jobs.
Additionally, tech giants like Meta Platforms (NASDAQ: META), Snap Inc. (NYSE: SNAP) and Microsoft (NASDAQ: MSFT) have announced hiring freezes or reductions.
In November last year, Twitter’s executive team witnessed some changes after Jack Dorsey left and Parag Agrawal took over as the company’s CEO. These changes include the removal of Security Head Peiter Zatko; Chief Information Security Officer Rinki Sethi; Engineering Head Michael Montano; and Chief Design Officer Dantley Davis.
What Are Analysts Saying?
On July 7, Evercore ISI analyst Mark Mahaney maintained a Hold rating on Twitter and lowered the price target to $54.20 from $60 (40% upside potential)
Mahaney has trimmed the company’s estimates “to account for inflation pressures, fierce foreign exchange headwinds, increasing signs of softening consumer demand and recession risk.”
Last month, Rob Sanderson of Loop Capital Markets reiterated a Hold rating on the stock and reduced the price target to $43 from $51 (11% upside potential).
In a research note, Sanderson said, “Whether we are actually in a recession or simply in an economic slowdown, given the limited visibility, continued supply-chain issues and ongoing Ukraine crisis, we expect very muted guidance from the digital companies during the upcoming round of earnings calls and would not be surprised if a few choose not to provide guidance.”
On TipRanks, the stock has a Hold consensus rating based on 23 unanimous Holds. Twitter’s average price target of $50.12 implies 29.2% upside potential from current levels. Shares have lost 42% over the past year.
Hedge Funds’ Activity on TipRanks
TipRanks’ Hedge Fund Trading Activity tool shows that the confidence in Twitter is currently Very Negative, as the cumulative change in holdings across all 20 hedge funds that were active in the last quarter was a decrease of 15.1 million shares.
Insider Signal Is Neutral on the Stock
TipRanks’ Insider Trading Activity tool shows that Insider Confidence Signal is currently Neutral on Twitter, with corporate insiders buying TWTR shares worth $1.7 million in the last three months.
In Troubled Waters
Twitter’s job cuts have come at a time when the social media company is waiting for Elon Musk to conclude its takeover. The stock has seen immense volatility in the last three months, ever since Musk first expressed his interest to acquire the company. TWTR stock slipped almost 4% in the extended trading session on Thursday.
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