Struggling social media giant Twitter is reportedly planning a new round of layoffs as earnings continue to sag and the company struggles to adjust. The expected cutbacks,first reported by Bloomberg, come as the tech company’s attempts to find a buyer appear to have fizzled.
Twitter’s share price has fallen by 40 percent in the last year, user growth has stagnated, and the company has gone through a series of leadership and staff shakeups. Jack Dorsey, Twitter’s co-founder, returned to the company as chief executive in October 2015 and immediately initiated an 8 percent reduction in force.
Despite that cutback, the company has failed to turn around its fortunes. Recent reports at several publications indicate deep unease within Twitter at Dorsey’s leadership, especially his joint roles as chief executive of Twitter and Square, an online payment firm he founded. Several senior figures at Twitter have been poached by Alphabet, the parent company of Google, and Facebook, Twitter’s arch-rival.
Dorsey has been trying to offload Twitter to another firm that could tolerate more losses as the company seeks user growth. Despite hiring bankers to shop the company to potential buyers, Twitter was unable to convince executives at Salesforce and The Walt Disney Co. to seal a deal.
Bloomberg’s report indicates that Dorsey is planning another 8 percent cut to Twitter’s workforce, which would mean up to 300 employees would lose their jobs. A smaller headcount would help Twitter more easily pay its most talented engineers with stock-based compensation, something its declining share price has made increasingly difficult.
A full announcement on Twitter’s job cut plans is expected on Thursday, the same day the company reports its third-quarter earnings to investors.