large image

Trusted Reviews is supported by its audience. If you purchase through links on our site, we may earn a commission. Learn more.

Twitter layoffs imminent under new CEO, say reports

Twitter’s user growth is stalling and, despite a strong revenue, the company is running at a $300 million loss.

That’s probably why new CEO Jack Dorsey is expected to begin layoffs at Twitter and halt headquarter expansion imminently, new reports claim.

“Twitter is planning company-wide layoffs next week, according to multiple sources,” Re/code reveals.

The claims are corroborated by a second report, this time in the NY Times:

Mr Dorsey is planning a series of cost-cutting manoeuvers at the social-networking company, including layoffs and halting a plan to expand the company’s San Francisco’s headquarters, according to three people familiar with the plans, who spoke on the condition of anonymity because the details are private.”

As of last quarter, Twitter reported a workforce of approximately 4,100 employees. This is double the number of staff working at the firm in the second quarter of 2013, just prior to the company’s IPO.

It’s alleged that Dorsey wants to trim that fat on a company seen by many as bloated.

“Twitter is clearly going through a transition – a new CEO, new products – and this restructuring is an avenue it will need to go down,” explains Brian Blau, a Gartner analyst.

Blau continues: “Reducing costs is always tough, but a better focus on execution and innovation will help them in the long run.”

Related: Best Android Apps 2015

The layoffs are purported to be in the pipeline for next week, and could come as soon as Tuesday 13 October.

Several areas of the company will be affected by the layoffs, including “the engineering and media teams”, according to the NYT.

Twitter was also due to go ahead with a 100,000sq ft expansion of its headquarters in San Francisco, but those plans are reportedly set to be scrapped.

Do you think Twitter should slim down its workforce? Let us know in the comments.

Check out our smartphone buyer’s video guide below:

Why trust our journalism?

Founded in 2004, Trusted Reviews exists to give our readers thorough, unbiased and independent advice on what to buy.

Today, we have millions of users a month from around the world, and assess more than 1,000 products a year.

author icon

Editorial independence

Editorial independence means being able to give an unbiased verdict about a product or company, with the avoidance of conflicts of interest. To ensure this is possible, every member of the editorial staff follows a clear code of conduct.

author icon

Professional conduct

We also expect our journalists to follow clear ethical standards in their work. Our staff members must strive for honesty and accuracy in everything they do. We follow the IPSO Editors’ code of practice to underpin these standards.