Twitter Expected To Layoff 300 Employees

Twitter executives are expected to announce layoffs very soon. Analysts expect that this social media company will announce an 8 percent cut before or during their quarterly earnings report, which is set for October 27th.

 

That 8 percent cut translates to around 300 Twitter employees. There has been no clear indication yet as to which departments will be the hardest hit, but most analysts expect the sales team to experience the most layoffs.

 

Just a year ago, Twitter also announced an 8 percent layoff around this same time. That was also the time Jack Dorsey, an original co-founder of Twitter, stepped in to become the company’s CEO. Dorsey also serves as CEO for the financial services company Square, Inc.

 

Twitter executives have not told the media if these cuts will affect their Periscope division. Periscope, which allows people to stream live videos, was bought by Twitter in 2015.

 

Twitter has been facing many challenges recently. Some of the major issues Twitter is trying to solve at the moment include increasing their user growth organically, dealing with harassment issues, and reigning in their spending.

 

Many stockholders were actually optimistic about Twitter’s prospects just a few weeks ago. Back then, there were major rumors circulating all around Wall Street about a takeover bid for Twitter. Twitter’s stock, which trades under the ticker TWTR, went as high as $24 at the beginning of October. Some of the companies said to be interested in acquiring Twitter included Microsoft, Google, Salesforce.com, and the Walt Disney Company.

 

However, since Salesforce.com and Disney have openly said they will not be buying Twitter anytime soon, the stock has plummeted in recent days. The stock is currently hovering around $17.

 

 

Twitter reportedly planning fresh round of layoffs

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.