Twitter cuts 336 jobs, or 8 percent of workforce, in restructuring
Twitter will lay off 336 employees, or about 8 percent, of its workforce, the microblogging company confirmed Tuesday.
Twitter noted in a securities filing disclosing the layoffs that the restructuring is part of an overall plan to focus on the company's top products and to drive overall efficiencies.
The news seemed to please investors, as Twitter's shares climbed 2.3 percent to $29.41 in premarket trading.
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The job cuts follow earlier reports that Jack Dorsey, who was brought in as the company's chief executive for a second time earlier this month, was planning layoffs across all of the company's departments.
"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," said Dorsey in a letter filed with the Securities and Exchange Commission.
"Product and Engineering are going to make the most significant structural changes to reflect our plan ahead," Dorsey added. "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."
Twitter also revised its revenue outlook for the third quarter above previous forecasts. The company now expects Q3 revenue at or above the high end of the previously forecasted ranges of $545 million to $560 million, with Ebitda profit closer to $115 million.
Additionally, Twitter expects to incur approximately $10 million to $20 million in cash expenses, largely related to severance payouts.
Dorsey made a point to note Twitter's commitment to assisting its soon-to-be former employees after the layoffs.
"We are doing this with the utmost respect for each and every person," he wrote. "Twitter will go to great lengths to take care of each individual by providing generous exit packages and help finding a new job."
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