Twitter is reportedly gearing up to lay off roughly 300 employees, according to Bloomberg, which warned that figure could change. The move would mirror a similar action the company took last year when it cut 8 percent of staff; roughly 336 jobs. The news comes just weeks after Salesforce, the last of several companies rumored to acquire Twitter, reportedly backed out of talks.
Twitter has had a difficult run over the past year. The company continues to report losses, has struggled with adding meaningful numbers of new active users and faces direct and widespread criticism for its lack of handling trolls and active harassment. A buyout might have seemed like a quick fix for some of those problems, offering hope for those who might think new management could start to turn certain problem areas around. Indeed, that’s exactly the sort of hope users and Wall Street had last year when Jack Dorsey took the helm of the company again. Yet here we are a year later with little to show in the way of change.
Twitter layoffs looming ahead of Q3 earnings
The layoffs are almost certainly related to cost-cutting measures, likely in an effort to streamline its business to push forward toward profitability. It also may come as Twitter faces difficult times rewarding employees. Bloomberg said that the 40-percent decline in Twitter’s share price over the last year has “made it more difficult for the company to pay its engineers with stock.” In the highly competitive Silicon Valley, what else is going to keep the best employees on board?
Twitter will reveal its third quarter earnings on Thursday, and the layoffs may be formally announced before then, Bloomberg said.