Twitter Inc (NYSE:TWTR) is struggling to gain more users and impress Wall Street. The social networking company is planning to cut 8% of the workforce or about 300 people as soon as this week, Bloomberg News reported, citing people familiar with the matter.
The company made the same percentage of workforce cuts last year when co-founder Jack Dorsey became CEO.
According to the person who wanted not to be identified, Twitter may announce the job cuts before its third-quarter earnings release on Thursday. They also noted that the number could change.
Why is Twitter cutting jobs?
The social media company is losing money.
Twitter shares have been under pressure as the company struggling to gain new users. The stock has lost more than 40% during the past 12 months. The stock is down more than 19% for the year.
The job cuts, which Twitter neither confirmed nor denied, are part of the company’s efforts to control spending as sales growth slows.
The company recently hired bankers and held talks with several companies about a possible sale. But companies that had expressed interest in bidding – Salesforce.com Inc., The Walt Disney Co. and Alphabet Inc. – later backed out from the process.
Stalled growth, losses and 40% fall in the company’s share price in the past 12 months have made it more difficult for the company to make payments to its workers and engineers with stock. So cutting jobs would relieve some of this pressure, Bloomberg said in the report.
Twitter Q3 Earnings
Twitter Inc (NASDAQ:TWTR) is set to report its third-quarter earnings on Oct. 27.
On Monday, investors were surprised with an announcement from the social media company about change in its third-quarter earnings reporting time. The company said that it will report earnings before the market opens on Thursday, instead of after the market closes.
Some analyst expects the company to report another quarter of flat or slightly lower user growth.