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Twitter Just Fired 350 Employees and Shut Down Vine

Twitter Just Fired 350 Employees and Shut Down Vine

October 28, 2016 / No Comments

Twitter’s 3Q 2016 earnings beat Wall Street’s expectations as the company posted a strong adjusted revenue of $616 million. This is an 8% increase over last year’s numbers, with adjusted earnings of 13 cents per share.

However, there’s also bitter news: 9 percent of its staff was dismissed, amounting to 350 people who are now looking for employment.

According to Recode, employees received an e-mail just right before the earnings announcement.  The cuts were focused on Twitter’s marketing and sales teams.

In a press release, Anthony Noto, Twitter’s CFO said,

We’re getting more disciplined about how we invest in the business, and we set a company goal of driving toward GAAP profitability in 2017. We intend to fully invest in our highest priorities and are de-prioritizing certain initiatives and simplifying how we operate in other areas.”

The layoffs may be an attempt by the company to lower their potential acquisition cost.  Those close to the company feel that Twitter is simply “too bloated,” and pay too much in stock-based compensation.  Back in June, the company had around 3,860 employees and paid $168 million in stock-based compensation.

In a press release, Anthony Noto, Twitter’s CFO said,

We’re getting more disciplined about how we invest in the business, and we set a company goal of driving toward GAAP profitability in 2017. We intend to fully invest in our highest priorities and are de-prioritizing certain initiatives and simplifying how we operate in other areas.”

The layoffs may be an attempt by the company to lower their potential acquisition cost.  Those close to the company feel that Twitter is simply “too bloated,” and pay too much in stock-based compensation.  Back in June, the company had around 3,860 employees and paid $168 million in stock-based compensation.

By: Daniel Adrian Sanchez

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