Twitter to cut 8% of global workforce amid restructuring plan
Social media giant Twitter is poised to slash almost 8% of its global workforce after unveiling a restructuring plan.
Twitter Inc
$53.70
11:00 08/03/24
The New York-listed company said on Tuesday it would cut up to 336 employees, adding the redundancies are expected to translate into cash expenditures, mainly due to severance packages, of between $10m to $20m.
The restructuring plan, which was implemented to focus on the company’s top products and improve efficiency, could cost the company between $5m to $15m, which Twitter expects to recognise in the fourth quarter of 2015.
“We feel strongly that Engineering will move much faster with a smaller and nimbler team, while remaining the biggest percentage of our workforce,” said group chief executive Jack Dorsey in an email addressed to employees.
“And the rest of the organization will be streamlined in parallel.”
Twitter forecast its third quarter revenue and earnings before interest, tax, depreciation and amortisation (EBITDA) to be above or in line with expectations.
Revenue was expected to be between $545m and $560m for the third quarter, with EBITDA of between $110m to $115m.
Twitter shares were up 1.77% to $28.74 in pre-market trading in New York at 1408 BST on Tuesday.