Twitter is laying off 8% of its global workforce
Kimberly White/Getty Images for Vanity Fair
The layoffs come just about a week after Twitter cofounder Jack Dorsey was appointed permanent CEO promising big changes for the company.
Dorsey has been vocal about the need to shake things up at the company, as user growth and engagement has stalled and the company's stock has been battered.
During Twitter's second quarter conference call in June, Dorsey called the performance "unacceptable," and said he would "ensure more disciplined execution," among other things.
Twitter will incur $10 million to $20 million of cash expenditures, which will be severance costs. Its restructuring expenses are estimated at $5 million to $15 million, according to the filing.
Here's the letter Dorsey sent to his staff regarding the layoffs:
From: Jack Dorsey
To: All Employees
Date: October 13, 2015
Subject: A more focused Twitter
Team,
We are moving forward with a restructuring of our workforce so we can put our company on a stronger path to grow. Emails like this are usually riddled with corporate speak so I'm going to give it to you straight.
The team has been working around the clock to produce streamlined roadmap for Twitter, Vine, and Periscope and they are shaping up to be strong. The roadmap is focused on the experiences which will have the greatest impact. We launched the first of these experiences last week with Moments, a great beginning, and a bold peek into the future of how people will see what's going on in the world.
The roadmap is also a plan to change how we work, and what we need to do that work. Product and Engineering are going to make the most significant structural changes to reflect our plan ahead. We feel strongly that Engineering will move much faster with a smaller and nimbler team, while remaining the biggest percentage of our workforce. And the rest of the organization will be streamlined in parallel.
So we have made an extremely tough decision: we plan to part ways with up to 336 people from across the company. 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.
Let's take this time to express our gratitude to all of those who are leaving us. We will honor them by doing our best to serve all the people that use Twitter. We do so with a more purpose-built team, which we'll continue to build strength into over time, as we are now enabled to reinvest in our most impactful priorities.
Thank you all for your trust and understanding here. This isn't easy. But it is right. The world needs a strong Twitter, and this is another step to get there. As always, please reach out to me directly with any ideas or questions.
Jack
Developing...
- I spent $2,000 for 7 nights in a 179-square-foot room on one of the world's largest cruise ships. Take a look inside my cabin.
- Saudi Arabia wants China to help fund its struggling $500 billion Neom megaproject. Investors may not be too excited.
- Colon cancer rates are rising in young people. If you have two symptoms you should get a colonoscopy, a GI oncologist says.
- India's forex reserves sufficient to cover 11 months of projected imports
- ITC plans to open more hotels overseas: CMD Sanjiv Puri
- 7 Indian dishes that are extremely rich in calcium
- 10 dry fruits to avoid in summer- beat the heat just by avoiding these
- 2024 LS polls pegged as costliest ever, expenditure may touch ₹1.35 lakh crore: Expert