New Twitter CEO Dorsey isn’t wasting any time making major changes in what appears to be an attempt to finally make the social network profitable. News reports say that he is getting ready to cut costs by reducing overall headcount and halting the company’s plans to expand its San Francisco offices.
The New York Times, citing unnamed sources, reported that the layoff announcement could come as soon as today, while Re/code said the layoffs would come later this week.
For the moment, Twitter is staying mum. A company spokesperson said in an e-mail to Computerworld, “We’re not commenting on rumour and speculation.”
Early last week, Dorsey, Twitter’s co-founder and former CEO, once again became head of the micro-blogging company. Dorsey had been working as interim CEO since the departure of Dick Costolo in July.
When news hit of Dorsey taking the company’s top seat again, industry analysts and observers immediately started talking about the challenges he is facing. Top among them is the fact that Twitter’s user growth is slowing, its users aren’t as engaged as they used to be and the company has yet to make a profit.
In 2014, Twitter reported revenue of $1.4 billion. Despite that flow of cash, the company still lost $539 million. In its last reported quarter, Twitter lost $137 million.
The company appeared to be hiring ahead of the expected growth that didn’t materialise.
Computerworld
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