Twitter Lays Off 8 Percent of Workforce as It Looks to 'Streamlined Roadmap'

Twitter’s 8 percent workforce reduction, announced to employees in a letter and in an 8-K SEC filing Tuesday, had been rumored in tweets going back to Friday. CNBC reported companywide layoffs in the week ahead as Jack Dorsey moved from interim to permanent CEO. Twitter said in the 8-K that the board voted Monday to cut 336 members of its global workforce as part of a plan “to organize around the Company’s top product priorities and drive efficiencies throughout the Company.” Twitter plans to reinvest savings in its most important priorities to drive growth, it said. Severance costs are expected to run between $10 million and $20 million, with restructuring expenses estimated to be $5 million to $15 million. In the employee letter, Dorsey said the restructuring would put the company “on a stronger path to grow.” Dorsey referred to a “streamlined roadmap” for Periscope, Twitter and Vine and a focus on experiences expected to have the greatest impact. One of those experiences, Moments, launched last week with “a great beginning” giving a “bold peek into the future of how people will see what’s going on in the world,” Dorsey said. Cuts will affect product and engineering teams the most, he said. Engineering will remain the biggest percentage of the workforce but will "move much faster with a smaller and nimbler team," Dorsey said. Twitter users commented on the news, led by Dorsey, whose Twitter handle is Jack: “Made some tough but necessary decisions that enable Twitter to move with greater focus and reinvest in our growth.” Anita B. wondered if the social media upward trend is “slowing down.” Jischinger observed: #twitterlayoffs not trending.” B_Meson pointed to Dorsey’s promise in his letter to “give it to you straight” rather than using corporate speak while following with the term “streamlined.” Predictable Twitter humor ensued: Zach Zimmerman said: “We’re limited to 129 characters now.”