Twitter Rumored To Have Company Wide Layoffs Soon
Jack Dorsey may have only been made permanent chief executive officer of Twitter quite recently, but his first order of business as such is expected to be anything but easy. After all, it seems that Dorsey, 38, shall be announcing some layoffs that will affect just about every department in the social media company.Advertisement
<re/code> reports that multiple sources have indicated there is going to be company-wide layoffs happening in Twitter and it can be announced as soon as this week. This move is said to be part of the company’s effort to downsize in order to cut cost and make the business more efficient. Moreover, since Twitter is in the process of restructuring its engineering department, it is reportedly likely that the rumored layoffs will be affecting a lot of engineers. Twitter’s engineers are said to make up about half of the company’s staff currently.
In its second quarter results, Twitter, Inc. reported a increase in revenue by 61% year-over-year, totaling to $502 million. This was well above it forecasted revenue range of $470 to $485 million. Moreover, the company also said that its monthly active users was up by 15%, going from 308 million in the previous quarter to 316 million in the second quarter. Nonetheless, Dorsey had said there remains a big room for improvement so “Twitter’s full potential” can be realized. Among the key areas he named was the need to “simplify” Twitters service to be able to deliver value faster.
Twitter is expected to release its third quarter earnings results on October 27. The company may also choose to wait till them to announce any layoffs.