- JUSTIN TALLIS/AFP/Getty Images
Twitter is laying off 336 employees, or about 8% of the company’s global workforce, according to a Tuesday SEC filing.
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 have 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 in severance costs. Its restructuring expenses are estimated at $5 million to $15 million, according to the filing.
Back in July, Twitter projected its revenue to be in the range of $545 million to $560 million, with adjusted EBITDA (earnings before certain expenses) projected to be in the range of $110 million to $115 million.
Today, that guidance is more positive: For Q3, Twitter “expects revenue and adjusted Ebitda for the third quarter of 2015 to be at or above the high end of the previously forecasted ranges of $545 million to $560 million and $110 million to $115 million, respectively,” according to Tuesday’s SEC filing.
This is good news for investors; the layoffs won’t hurt the company’s ability to generate revenues but will help maintain Twitter’s profitability. Twitter’s stock is up 3.7% following the news of the layoffs.
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
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.