Just days ahead of its Q3 earnings report, Twitter is reportedly planning widespread job cuts following the demise of the deal-scheme.As Bloomberg reports, the company may cut about another 8% of the workforce, or around 300 people leaving its headcount the smallest since Q3 2014.
As Bloomberg reports, according to people familiar with the matter, the company may cut about 8 percent of the workforce, or about 300 people, the same percentage it did last year when co-founder Jack Dorsey took over as chief executive officer, the people said.
Planning for the cuts is still fluid and the number could change, they added. The people asked not to be identified talking about private company plans.
Twitter’s losses and 40 percent fall in its share price the past 12 months have made it more difficult for the company to pay its engineers with stock. That has made it harder for Twitter to compete for talent with giant rivals like Alphabet Inc.’s Google and Facebook Inc. Reducing employee numbers would relieve some of this pressure.
Twitter, which loses money, is trying to control spending as sales growth slows.
The company recently hired bankers to explore a sale, but the companies that had expressed interest in bidding — Salesforce.com Inc., The Walt Disney Co. and Alphabet Inc. — later backed out from the process.
With the stock back at pre-deal-hype levels, the big question is whether a collapsing headcount is the last straw on this camel’s back…
Twitter shares fell $0.14 (-0.78%) to $17.89 in premarket trading Tuesday. Year-to-date, TWTR has now fallen 22.08%.
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