Twitter cuts up to 8% of its workforce, over 300 employees. 336 to be exact. The company's announcement pushes the shares on the Stock Exchange, where they manage to gain over 5% and then stop at 3,5%. “We have made difficult but necessary decisions” writes the CEO and founder Jack Dorsey in a note to employees, determined to streamline the engineering division in an attempt to obtain a more “agile” team.
“The board of directors has approved a plan to restructure and reduce the workforce – reads the letter sent to the Sec-. The restructuring is part of a plan to organize the company around its priorities”. Twitter has also stated that it will allocate up to 35 million for the restructuring and, of this amount, 10-20 million should go to outgoing staff, in the form of severances and goodwill. The remainder covers renovation costs estimated at $5 million to $15 million.
The company had 4.100 employees at the end of the second quarter, more than double the approximately 2.000 employees it had in the same period of 2013 just before the IPO. Twitter made its public debut in 2013.
