A star in the social media – Twitter – is seemingly dimming and things are not looking bright with new reports suggesting that the microblogging site could be all set to cull 300 jobs as it still looks for buyers.
300 job cuts account for 8 per cent of the total workforce and the announcement about the job cull could come just before the company announces its third-quarter earnings on Thursday reported Bloomberg citing people familiar with the matter. The report also notes that the figure regarding job cuts isn’t final and it could change – increase of decrease.
Twitter cut 336 jobs last year after Jack Dorsey took over as permanent CEO. The latest round of job cuts may be considering as something that follows naturally after Twitter hasn’t been able to dole out impressive revenue figures as well as increase in userbase. Advertisers haven’t been impressed with Twitter’s performance and rivals have increasingly been grabbing Twitter’s advertising customers.
Twitter has been actively looking for buyers with initial reports suggesting that Salesforce.com was one of the most interested companies. However, the CRM company eventually pulled back and refrained from making a bid leaving Twitter without any buyer – at least that’s what the reports claim.
With a market cap of about $12.76 billion and losses running at about $400 million a year, Twitter was likely judged too expensive by prospective buyers. The company said in September it would lay off some employees and halt engineering work at one of its development centers in India’s technology hub Bengaluru.
Twitter on Monday said it rescheduled the release of its third-quarter earnings to before the market open on Thursday to avoid conflicting with earnings announcements by other internet companies. It had originally planned to release results after the market close. The company had 3,860 employees globally as of June.