Just a few days after Jack Dorsey was named Twitter’s new CEO, the tech company has announced that about 8% of its global workforce will lose their jobs.
Twitter Cuts Over 300 Jobs as Part Of Business Restructuring
In a statement, Twitter said it will let go of up to 336 of its employees globally in an effort to restructure the business.
Following the announcement, Twitter shares rose by 2% before the commencement of trading.
Twitter will incur between $10m and $20m as part of the job cut costs and between $5m and $15m in restructuring, the company announced.
Mr. Dorsey has been the interim CEO at Twitter for three months following Dick Costolo’s resignation in July of this year. Mr. Costolo served as the boss at the tech company since 2010 and is said to have faced tremendous pressure from investors who were concerned about the slow pace of growth at the company.
Addressing employees in a letter, Mr. Dorsey said, “This is an extremely tough decision—we plan to let go up to 336 people from across the company.”
He further added, “We are doing this with complete respect for each and every person. Twitter will go to great lengths to ensure each individual is taken care of through a generous exit package and assistance in finding a new job.”
Dorsey also spoke about Twitter’s efforts to integrate and leverage its properties including Periscope, Vine and Twitter, asserting that the company is set to provide its users an innovative tool that will allow them to see what is going on in the world, in a bold new way.
Although profit-focused investors usually welcome cost-cutting measures, the job cut reports seem to have generated negative sentiments among shareholders as shares traded sharply lower following the announcement.
The restructuring reports come only two weeks before Twitter announces its third quarter results, an indication that the tech company may be repositioning its expenses amidst slow revenue growth.