Twitter to cut 9pc of its workforce, loss of 350 jobs

Twitter beat Q3 earnings expectations and in a drive to achieve profitability, the company is to cut 9pc of its workforce, resulting in the loss of 350 jobs.

Twitter today reported an 8pc rise in third-quarter revenues of $616m, ahead of analysts’ forecasts of $605m.

It took the unorthodox step of announcing its earnings before the markets in the US opened, leaving them to make up their own minds on how the future looks for the company.

Despite the revenue growth, the company recently failed to find an acquirer as Salesforce, Disney and Google’s parent company Alphabet have all walked away from the table.

‘We have a clear plan, and we’re making the necessary changes to ensure Twitter is positioned for long-term growth’
^{– JACK DORSEY}

But even though an 8pc increase in revenues is positive, it is a long way off the 58pc growth rate reported last year.

Twitter revealed that it incurred a Q3 loss of $103m.

Average monthly users were up 3pc year-over-year to 313m users.

Daily active usage grew 7pc year-over-year, up 5pc on the last quarter and 3pc in Q1.

Advertising revenue totalled $545m, up 6pc. Mobile advertising revenue was 90pc of total advertising revenue.

Data licensing and other revenues totalled $71m, up 26pc on last year.

Twitter birds leaving the nest

As expected, Twitter is trimming the flock to achieve greater profitability.

9pc of its workforce will be let go, meaning 350 people will lose their jobs.

Twitter is focused on restructuring sales, partnerships and marketing efforts to achieve greater focus and efficiency.

“Our strategy is directly driving growth in audience and engagement, with an acceleration in year-over-year growth for daily active usage, Tweet impressions, and time spent for the second consecutive quarter,” said Jack Dorsey, Twitter’s CEO.

“We see a significant opportunity to increase growth as we continue to improve the core service. We have a clear plan, and we’re making the necessary changes to ensure Twitter is positioned for long-term growth.

“The key drivers of future revenue growth are trending positive, and we remain confident in Twitter’s future.”

Twitter flotation on New York Stock Exchange in 2013. Image: Anthony Correia/Shutterstock