Twitter Lays Off 8 Percent Of Workforce To Focus On ‘Top Product Priorities’
In a filing with the United States Securities and Exchange Commission (SEC), Twitter revealed that it's preparing to hand out 336 pink slips as part of a reorganization effort. In the short term, the layoffs, which amount to 8 percent of Twitter's workforce, will cost the company between $10 million and $20 million in severance pay.
Investors at first reacted negatively to the news of the layoffs, sending Twitter's share price down by more than 6.8 percent to $28.75 on Monday. However, it's up more than 5 percent today at $30.24 per share. The quick recovery is a show of faith in Twitter co-founder Jack Dorsey, who just last week returned to take the reins as CEO.
In the SEC filing, Twitter said "the restructuring is part of an overall plan to organize around the company’s top product priorities and drive efficiencies" throughout the firm. The money Twitter saves by shaving staff will ultimately go towards investments in what Twitter deems "its most important priorities to drive growth," whatever those might be.
On Twitter, Dorsey explained that he "made some tough but necessary decisions that enable Twitter to move with greater focus and reinvest in our growth." What he's ultimately doing is creating a more nimble company as he figures out how to make Twitter a profit generating machine, something that's been a challenge for the company up to this point.
At last count, Twitter reported having 316 million monthly active users.
Investors at first reacted negatively to the news of the layoffs, sending Twitter's share price down by more than 6.8 percent to $28.75 on Monday. However, it's up more than 5 percent today at $30.24 per share. The quick recovery is a show of faith in Twitter co-founder Jack Dorsey, who just last week returned to take the reins as CEO.
In the SEC filing, Twitter said "the restructuring is part of an overall plan to organize around the company’s top product priorities and drive efficiencies" throughout the firm. The money Twitter saves by shaving staff will ultimately go towards investments in what Twitter deems "its most important priorities to drive growth," whatever those might be.
On Twitter, Dorsey explained that he "made some tough but necessary decisions that enable Twitter to move with greater focus and reinvest in our growth." What he's ultimately doing is creating a more nimble company as he figures out how to make Twitter a profit generating machine, something that's been a challenge for the company up to this point.
At last count, Twitter reported having 316 million monthly active users.
