Twitter’s CEO is making hundreds of staff redundant
Twitter CEO Jack Dorsey has confirmed that the company will cut 336 staff following downsizing rumours.
Reports of possible cuts surfaced when Dorsey, a Twitter co-founder, was made permanent CEO of the company at the start of October with both Re/code and the NY Times reporting the planned restructure.
Dorsey announced the 336 layoffs, which amounts to 8 per cent of Twitter’s work force, in a letter to all employees, saying: “This isn’t easy. But it is right.”
He goes on to say: “We are doing this with the utmost respect for each and every person. Twitter will go to great lengths to take care of each individual by providing generous exit packages and help finding a new job.”
The letter also made clear that engineering staff, which make up around 50 per cent of the company’s workforce, would be mostly affected.
Twitter will pay out around $10m to $20m in severance costs following the restructuring.
The site currently has 316 million monthly users and employs 4,100 workers around the world.
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Dorsey, who is also CEO of payments company Square, had been acting as interim CEO at Twitter since the departure of Dick Costolo in July, before being made permanent CEO on October 5.
He now faces a tough challenge ahead with the site running at a $300 million loss and user growth stagnating.
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.
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