Twitter is laying off nine percent of its workforce as the company struggles to stay relevant in an over-saturated social media market.
The microblogging site made the announcement as part of its quarterly report in which it posted revenue of $616 million or 13 cents per share. The company managed to surpass Wall Street’s meager expectations of $605.8 million in revenue with earnings per share of nine cents.
Twitter also reported its monthly active user rate has risen three percent in the quarter to 317 million — not impressive, perhaps, but certainly better than the abysmal one percent rise of monthly active users during its second quarter from 310 million to 313 million.
“Our strategy is directly driving growth in audience and engagement, with an acceleration in year-over-year growth for daily active usage, Tweet impressions, and time spent for the second consecutive quarter,” Twitter CEO Jack Dorsey said in a statement. “We see a significant opportunity to increase growth as we continue to improve the core service. We have a clear plan, and we’re making the necessary changes to ensure Twitter is positioned for long-term growth. The key drivers of future revenue growth are trending positive, and we remain confident in Twitter’s future.”
Twitter shares rose roughly five percent in premarket trading after the 40 percent freefall the stock has been in this year.
The third quarter report is a little bit of good news after a number of major companies pulled out of the race to purchase Twitter. Google, Disney, Apple and Salesforce have all reportedly decided against making an official bid for the firm, taking a pass on owning the reams of data Twitter generates on a daily basis.
It was reported Microsoft and Verizon might be interested in acquiring the firm, but, so far, that is just speculation.
Sources had told Reuters at the beginning of the month that Dorsey wanted to wrap-up negotiations by the end of October to coincide with the company’s third-quarter report. Obviously that deadline has past, and Dorsey had little to say about a sale of Twitter during a conference call today with analysts.
Jennifer Cowan is the Managing Editor for SiteProNews.
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