Twitter isn’t doing so wonderfully right now, and it’s not hard to see why. Stagnant user growth despite a number of different tactics employed to differentiate the service and add appeal are part and parcel of the sweeping identity crisis that Twitter has experienced. The issue has gotten to the point that some are calling for the company to sell itself, though that notion has thus far met staunch resistance from CEO Jack Dorsey. The company’s dwindling fortunes mandate action of some sort to keep things in balance, and in these sorts of cases, talent is normally the first expense to be cut. According to anonymous insiders, Twitter’s plans include cutting around 8% of their total workforce, or 300 jobs, to take some of the edge off of their current financial situation.
Part of the issue is due to Twitter’s falling stock prices. Partial compensation via stock options is par for the course when it comes to big tech firms, and Twitter has always been part of that crowd. When market analysts and investors begin to doubt the company’s performance, however, it becomes a bit harder to gain and retain talent with some of the pay negotiations seemingly based around a commodity in the midst of a rapid depreciation that, for now, shows no signs of stopping. Stock prices have thus far plunged 40% in the last year. Cutting down the budget to stretch Twitter’s on-hand cash is, of course, also part of the motivation behind the cuts.
It doesn’t exactly help matters that most of the companies who were interested in buying Twitter, such as Disney and Salesforce, have largely backed off. This leaves the internet giant essentially on their own in finding a solution to their budget woes, unable to rely on help or an easy way out from an outside entity. For the time being, the plans for cutting jobs are not finalized, so if Twitter’s fortunes improve in the very near future, the number of jobs headed out the door may be a bit fewer. In any case, some sort of announcement about this matter by higher-ups is very likely when Twitter puts out their Q3 2016 earnings call.