New Twitter chief executive Jack Dorsey has moved quickly to make – in his words – “some tough but necessary decisions that enable Twitter to move with greater focus and reinvest in our growth”.
If you’re thinking that means layoffs, you’d be right: up to 336 people will be losing their jobs at Twitter, which amounts to around 8% of its workforce.
“We feel strongly that Engineering will move much faster with a smaller and nimbler team, while remaining the biggest percentage of our workforce,” explained Dorsey in a memo to staff.
“And the rest of the organisation will be streamlined in parallel… This isn’t easy. But it is right. The world needs a strong Twitter, and this is another step to get there.”
Wall Street approved, with the company’s share price rising following the news – although the announcement that Twitter’s next quarterly revenues will be higher than expected at $545m-$560m helped on that score.
Dorsey’s next job following cutting costs is to reignite user growth: something that will be a slower process.