Twitter’s fate has been up in the air for weeks now as the company has been the center of rumors concerning a possible acquisition. Now Twitter is planning “widespread” job cuts to be announced as soon as this week.
The company may cut about 8 percent of the workforce, or about 300 people, the same percentage it did last year when co-founder Jack Dorsey took over as chief executive officer, the people said. Planning for the cuts is still fluid and the number could change, they added.
Twitter, which loses money, is trying to control spending as sales growth slows. The company recently hired bankers to explore a sale, but the companies that had expressed interest in bidding — Salesforce.com Inc., The Walt Disney Co. and Alphabet Inc. — later backed out from the process.
Twitter will likely announce the job cuts during its earnings call this Thursday. The company plans to report its earnings at 4AM PT/7AM ET, with a conference call to follow at 5AM PT/8AM ET. Twitter says the reasoning for its odd timing for release is to avoid conflict with other companies.
Twitter’s losses and 40 percent fall in its share price the past 12 months have made it more difficult for the company to pay its engineers with stock. That has made it harder for Twitter to compete for talent with giant rivals like Alphabet Inc.’s Google and Facebook Inc. Reducing employee numbers would relieve some of this pressure.