Twitter Laying Off Up To 336 Employees To Cut Costs
This was announced and the move signals CEO Jack Dorsey’s resolve to slash costs.
The company struggles to make money and the purge comes 14 days after Twitter brought back one of its co-founders Dorsey as permanent CEO and hopes that he would be able to resolve problems related with uninterrupted cycle of financial losses.
Cutting costs can no doubt boost profits but it has also raised uncertainty about the future of Twitter. The move also raises doubts about the company’s desire for aggressive growth.
The job cuts may be a sign of desperation at a sinking company, said Richard Windsor, Edison Investment Research analyst.
Yet the workforce of Twitter has nearly doubled over the past two years. In 2006 Dorsey and his partners started the company and since then twitter has lost nearly $2 billion.
The company’s third-quarter results are scheduled for October 27 and investors are worried that it will be another disappointment.
However, some investors agree with Dorsey that the company must cut back before it begins to move on the path of growth & shares rose almost 3 per cent in premarket trading.
Twitter is too confusing for many people to use, acknowledged Dorsey. This may be the reason that the new users are turning off. At the same time, other social services such as Snapchat and Facebook’s WhatsApp have grown in popularity.
It is pertinent to mention here that in order to grab attention, Twitter last week unveiled a new feature called Moments which packages video, commentary and photos.