Twitter Inc To Cut 300 More Jobs This Week [REPORT]

Twitter, TWTRPhoto by edisona (Pixabay)

Twitter is considering slashing its workforce 8% further or about 300 employees, reported Bloomberg on Monday, citing people familiar with the matter. The company will report its third quarter earnings on Thursday and might announce the job cuts before that. The number of job cuts might change, adds Bloomberg.

Twitter to continue cutting jobs

A week after Twitter’s current CEO, Jack Dorsey, took over as permanent CEO last year, the company announced its plan of laying off up to 336 employees or 8% of its workforce. As of June, there were 3,860 employees working for the company globally. In September, the company said it would lay off some employees and stop the engineering work at one of its development centers in India’s technology hub Bengaluru.

Twitter has incurred huge losses and also saw a decline of 40% in its share price over the past 12 months. This made it even more difficult for the company to pay its engineers with stock. This also made it hard for the company to compete for talent with arch rivals such as Google and Facebook.

Hopefully laying off employees will relieve it of some of this pressure. As of now, there has been no comment from the company about the Bloomberg report.

Growth issues at Twitter

Last month, the company hired bankers to field acquisition offers. But now it is facing an uncertain future as the last company that was believed to be interested in buying it, Salesforce, has now said that it won’t make a bid. Twitter, with a market cap of about $12.76 billion, is incurring annual losses of $400 million. This made its prospective buyers think it was too expensive.

While most of Twitter’s peers have added a significant number of users and have adequately monetized through advertising, Twitter has failed to do any of this. In the second quarter, the company had 313 million MAUs, while the number went up by 3% on a year-over-year basis to 310 million in the next quarter.

Twitter informed investors on Monday that it had rescheduled the release of its third quarter earnings to before the market open on Thursday to avoid conflict with earnings announcements by other internet companies. Its original plan was to release results after the market close, notes Reuters.

On Monday, Twitter shares closed down 0.33% at $18.03. Year to date, the stock is down almost 19%, while in the last year, it is down more than 40%. The stock has a 52-week high of $31.87 and a 52-week low of $13.73.

For exclusive info on hedge funds and the latest news from value investing world at only a few dollars a month check out ValueWalk Premium right here.

Multiple people interested? Check out our new corporate plan right here (We are currently offering a major discount)



About the Author

Aman Jain
Aman is MBA (Finance) with an experience on both Marketing and Finance side. He has worked as a Risk Analyst for AIR Worldwide, and is currently leading VeRa FinServ, a Financial Research firm. Favorite pastimes include watching science fiction movies, reviewing tech gadgets, playing PC games and cricket. - Email him at amanjain@valuewalk.com

Be the first to comment on "Twitter Inc To Cut 300 More Jobs This Week [REPORT]"

Leave a comment

Your email address will not be published.