- Twitter said it "significantly" slowed hiring in the second quarter to manage costs.
- The company also set a vote on Elon Musk's takeover and urged shareholders to vote for the deal.
- Musk cited Twitter's hiring practices as one reason he wants to terminate his deal to buy the company for $44 billion.
Twitter said it "significantly" slowed hiring in the second quarter today in order to manage costs as the company faces a legal fight with billionaire Elon Musk over whether the Tesla CEO will purchase Twitter for $44 billion, according to a filing Tuesday with the SEC.
The social media giant said that it has also faced a higher attrition rate, meaning employees are quitting at a fast pace due to uncertainty surrounding the takeover bid by Musk.
Twitter is currently embroiled in a legal battle with Musk, who initially agreed to purchase the company for $44 billion in April, but then tried to terminate the deal less than two months later. The company sued Musk for trying to back out of the agreement, and the two parties will face off in a Delaware court in October.
Twitter officially set a shareholder vote for the Musk buyout deal on September 13. In a filing, Twitter's board urged shareholders to vote for the deal.
Twitter's hiring practices were a point of contention between the company and Musk, whose lawyers cited a recent announcement that the company was instituting a hiring freeze and rescinding job offer letters as one reason he was terminating the deal. However, Twitter says it negotiated a right to hire and fire employees into its agreement with Musk.
