Microblogging website Twitter has reduced 9 percent of its workforce globally and has also killed off Vine, its mobile video app where users share short video clips that play in a loop.
The layoffs are expected to impact about 350 employees across various departments including sales, partnerships and marketing efforts.
We at GIZBOT, tried to understand what's going wrong with the popular social networking platform- Twitter.
Trouble at Twitter?
The reasons dates back to few months back when the micro-blogging website initiated talks with several technology companies to explore selling itself to other bigger names in the industry.
The company, which at that time had a market value of around $16 billion, internally conducted debates to sell off the entire business to bigger rivals in order to prevent itself from getting wiped from the picture.
Lack of Innovation?
Things were just not going right with the micro-blogging site for quite a while. It introduced new features like Twitter Highlights, a new homepage, stepped into video world with Vine, Periscope, etc. but at the same time it is considered as a niche social media site that might never manage to gain the user base matching the likes of Facebook, Instagram and Snapchat. Besides, abusive users on the platform have remained to be the biggest pain for the company's credibility.
The announcement for killing the Vine mobile app and laying off 9 percent of its workforce was made during the company's third quarter (2016) results. As per Recode's data, the results beat analysts' expectations, leading to a 2 per cent jump in Twitter shares in afternoon trading on Thursday.
In a bid to realign its future goals and cut costs,
What Twitter has to say?
Twitter CEO Jack Dorsey in a statement said, "We have a clear plan, and we're making the necessary changes to ensure Twitter is positioned for long-term growth."
CFO Anthony Noto added that the company is getting more disciplined about how it is investing in the business, and it has set a goal of driving toward GAAP profitability in 2017.
Anthony also added that Twitter is intend to fully invest in company's highest priorities and is de-prioritising certain initiatives and simplifying how it operate in other areas.
What Numbers Signifies?
Twitter posted a revenue of $616 million, up 8 per cent year-over-year, and reported net income of $92 million. Twitter's net loss in the quarter was $103 million, an improvement from a net loss of $132 million in the year-earlier period.
Monthly active users (MAUs) reached 317 million for the third quarter, up 3 per cent from 313 million in the previous quarter.
What Future Holds for Twitter?
This is not the first-time Twitter has reduced its work force. Last year Twitter had cut 300 jobs after Dorsey took over as CEO full-time. As stated by IANS, Twitter had 3,860 employees as of June 30 this year and paid out $168 million in stock-based compensation in the second quarter.
Earlier this month, Twitter's last potential buyer Salesforce also decided not to make a bid to buy the micro-blogging website.
It's too early to say what future holds for Twitter, its employees and millions of users worldwide, but we really want the micro-blogging site to live in the new age of digital world to let us express our thoughts freely.