Social media giant Twitter has confirmed that it is swinging the axe on hundreds of jobs as the company moved to reduce its global workforce by 9% in what is certainly a major shakeup of the business.
According to a report from Recode, about 347 jobs are set to be laid off as the company trims down its 3,860 headcount. The San Francisco-based social media company said that this “restructuring” will allow it to refocus on its “sales, partnerships, and marketing efforts” in an attempt to again become profitable next year.
Jack Dorsey, Twitter’s chief executive and co-founder, said the company is making the “necessary changes” to ensure it was primed for long-term growth.
“We see a significant opportunity to increase growth as we continue to improve the core service,” Dorsey added. “The key drivers of future revenue growth are trending positive, and we remain confident in Twitter’s future.”
The company said it will take a cost hit of around 10 to 20 million USD as a result of the staff restructuring, with the large majority of the money being spent on severance payments for staff.
Colin Cieszynski, chief market strategist at CMC Markets, said: “This announcement looks like Twitter may be primping itself in the hope of attracting a better bid, perhaps later today, perhaps in the coming weeks.
“The longer we go without a bid, however, the more likely the company may continue on alone.”