What’s happening at Twitter lately? Today, we found out that 350 employees have been laid off, or 9% of the workforce. The cuts were announced alongside the company’s Q3 earnings which exceeded Wall Street expectations. The employees were just notified prior to the Q3 announcements, but the team will be addressed as a whole by CEO Jack Dorsey later today.
Recode reports that most of the layoffs impacted Twitter’s sales and marketing teams, with CFO Anthony Noto acknowledging that the company is intended to “fully invest in our highest priorities” and to “[de-prioritize] certain initiatives.” Almost exactly a year ago, Twitter laid off another 300+ employees, that time focused on product and engineering teams.
This year’s focus was likely on being able to sell the company. As the company is not yet profitable, the acquisition costs are not so sensible for any prospective buyers. Removing unnecessary extra expenditures is a necessary step for a potential acquisition, Recode reports.
More information will be shared in today’s Twitter’s earnings call.
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Author: Tamar Weinberg