Twitter planning hundreds of job cuts

  | James Innes

Bloomberg has reported that Twitter may cut up to 8% of its staff, or around 300 jobs, as early as this week with the sales teams, in particular, targeted for layoffs. Coincidentally, or not, the company decided to move the release of its quarterly earnings up to 4 am PST on Thursday 27th October, when many hi-tech stock analysts and staff, are asleep.

The portends for the struggling social networking site do not look good, since co-founder Jack Dorsey reassumed control of the company around a year ago. He began his second stint in charge of the company with another round of job cuts, and the layoffs about to be announced will cap a year in which the stock price has fallen by 40%.

The company has consistently failed to meet its revenue targets, with rivals such as Facebook and Snapchat reporting much faster growth, whilst issues surrounding internet trolls on the platform continue to dog the company. Attempts to woo suitors like Salesforce and Disney have so far failed, the latter, in particular, reluctant to risk its family friendly image over Twitter’s failure to adequately control the use of the networking site by cyber bullies.

Twitter has failed to make a profit since it was launched in 2006, and its losses, combined with the fall in the stock price, has made it more difficult to pay its engineers with shares. That, in turn, has made it more difficult for Twitter to compete with the likes of Facebook and Google for talent.

Cutting staff number s should relieve some of that pressure and help convince Wall Street that the company is going to become more efficient. Still, critics contend that Dorsey has not made any dramatic changes to the product over the past year, and that more radical enhancements, as well as finding a way to solve the troll problem in a more permanent fashion, are called for if the company’s fortunes are to be revised.


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