Twitter Inc (NYSE:TWTR) may cut as many as 300 jobs, or 8 percent of its workforce soon. The Bloomberg report Monday night stated that job cuts may come before twitter releases Q3 earnings on October 27th. Job cuts are on the rise again since last year when co-founder Jack Dorsey took over as chief executive officer. The amount of jobs cut is just an estimation and subject to change.
The job cuts suggest that Twitter isn’t ready to beat analyst expectations for Q3 or outlook for Q4, stated Loop Capital analyst Blake Harper as he rated the stock a hold. Twitter stock is down over 4 percent.
Twitter’s losses and 40% shave in share value within the last 12 months make it difficult for the company to pay its engineers with stock. It also makes it more difficult for Twitter to compete with Alphabet Inc.’s Google and Facebook Inc. Cutting jobs would relieve pressure.
Twitter is attempting to control spending as sales growth weakens. Recently, bankers were hired to explore the possibility of a sale, but the companies interested had backed out. (Salesforce.com Inc., Walt Disney Co., and alphabet Inc.)
Twitter offers products and services for users, advertisers, developers and platform and data partners. The Company’s service is live-live commentary, live connections, live conversations.