Twitter will soon be handing out pink slips to up to eight percent of its workforce, or roughly 300 people, Bloomberg is reporting.
The job cuts could come this week — possibly before Twitter’s third-quarter earnings report is posted Thursday, Bloomberg reported, citing anonymous sources.
The layoffs should comes as no surprise. Twitter admitted this summer it is having a hard time attracting advertising dollars. And that was reflected in its previous quarter’s results: Twitter recorded revenue of $602 million which fell well short of Wall Street’s estimate of $606.8 million. It was the slowest revenue growth quarter-to-quarter since Twitter went public in November 2013.
Combine that with sluggish user growth — a one percent rise in the number of monthly active users in the second quarter from 310 million to 313 million — and that adds up to some major problems for the microblogging site.
CEO Jack Dorsey’s plan to sell the company is not going as planned, either. Google has reportedly pulled out of the potential bidding war for Twitter as have Salesforce, Disney and Apple.
Twitter shares have declined sharply in the last number of months — and dipped more than 40 percent from their 52-week high in after hours trading Monday.
Twitter has declined to speak to the layoff rumors, saying only that it does not comment on speculation.
Jennifer Cowan is the Managing Editor for SiteProNews.