Twitter is preparing to cut an estimated 8 percent of its workforce this week, people familiar with the decision told Bloomberg. The reduction of approximately 300 people comes ahead of Twitter's third-quarter earnings report, expected at 7 a.m. ET on Thursday.
The company has faced continued struggles to turn itself around, with a 40 percent fall in its share price in the past year making it tempting for engineers to exit for rivals like Google and Facebook. Twitter has also explored a sale, although Walt Disney Co., Alphabet Inc., and others eventually withdrew from the talks.
Without an obvious suitor, Twitter's going to need to figure out a way to be more forward-looking and hopeful to Wall Street. Starting off with layoffs to make the business more efficient is sometimes where things go.
But it's still going to come down to actually improving the product. Trolls aside, [co-founder and CEO Jack] Dorsey has actually not made any dramatic sweeping changes to the service other than adding more of an algorithmic touch to the feed. And attempts to make it less confusing, like removing contributions to character limits for kinds of media and trying to fix @replies (and "canoes"), still haven't helped make the service more sticky and attract new users. (There's also Moments, but that story still hasn't seemingly played out yet.) [TechCrunch]
Twitter also dropped 8 percent of its employees a year ago, when Dorsey rejoined as CEO.