Twitter to have major layoffs next week, report says

October 11 23:40 2015

Twitter is planning layoffs next week, according to technology news outlet Re/code. The cuts will be made company wide, Re/code said. “We’re not commenting on rumor and speculation,” Twitter spokesman Jim Prosser said.twitter-screen

Twitter shares fell 3% in after-hours trading. They closed up about 2% to $30.85 on Friday. Twitter had 4,200 employees at the end of June. That’s more than double the 2,000 employees it had in the second quarter of 2013. Yet its user growth has not kept pace. The layoffs would come one week after Twitter co-founder Jack Dorsey was appointed CEO. He has been serving as interim CEO since July 1.

Twitter has also apparently shelved plans to expand into a building on Market Street in San Francisco that is home to Uber and Square. According to the San Francisco Business Times, Twitter was close to finalizing the deal to take about 100,000 square feet before abandoning the deal.

  Categories: