Twitter will reportedly be cutting up to 300 jobs in an effort to save money as the social network's growth has slowed significantly over the past year.
The job cuts will likely be announced next week before the company releases its third quarter earnings report on Thursday. These cuts could affect eight per cent of Twitter's total workforce, though this figure could of course change leading up to the announcement.
A year ago the company made similar job cuts with the intention of focusing more on its main products and being more efficient. At that time, Twitter laid off 336 employees a week after its co-founder Jack Dorsey became the company's CEO. Dorsey informed employees of the job cuts via an email, in which he said: “We are moving forward with a restructuring of our workforce so that we can put our company on a stronger path to grow. Emails like this are usually riddled with corporate speak so I'm going to give it to you straight.
“We have made an extremely tough decision: we plan to part ways with up to 336 people from across the company. We are doing this with the utmost respect for each and every person. Twitter will go to great lengths to take care of each individual by providing generous exit packages and help finding a new job.”
Twitter has recently been in the news a great deal as it has been shopping around for a buyer who would purchase the company. However, all interested parties, which included Salesforce, Walt Disney and Google, have now withdrawn their bids (opens in new tab) which has hurt both the company's value and its reputation.
Twitter has also had difficulties paying its engineers as its shares have fallen by 40 per cent over the course of a year. This has left the company in a tough position as it is now no longer able to compete with its rivals like Google and Facebook when it comes to securing the most talented employees. As of June of this year, Twitter had 3,860 employees worldwide though this number is likely to drop if the rumours regarding job cuts prove to be true.
For the past few years the company has seen tremendous growth in its market share and the value of its stock, though the losses Twitter has incurred this year coupled with the news that other large tech companies are no longer interested in purchasing it, doesn't make for a happy social network.
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