Twitter to Lay off Up to 8 Percent of Staff
"The restructuring is part of an overall plan to organize around the company’s top product priorities and drive efficiencies throughout the company," the tech company said in a regulatory filing.
Twitter said in a regulatory filing Tuesday that on Monday "the board of directors of the company approved a restructuring and reduction in force plan of up to 336 employees, constituting approximately 8 percent of the company’s global workforce."
It added: "The restructuring is part of an overall plan to organize around the company’s top product priorities and drive efficiencies throughout the company. The company intends to reinvest savings in its most important priorities to drive growth."
Twitter CEO Jack Dorsey in an internal letter to employees said rejiggering the engineering division will ensure it moves "much faster with a smaller and nimbler team, while remaining the biggest percentage of our workforce."
"And the rest of the organization will be streamlined in parallel," Dorsey added, as Twitter is working "around the clock to produce a streamlined roadmap for Twitter, Vine, and Periscope."
Tuesday's filing and internal letter confirm and provide specifics on last week's news of reported upcoming company-wide layoffs.
Twitter, which launched in 2006, is trimming its employee count from the 4,100 people reported in its latest financial results, a 24 percent increase year over year.
Dorsey was officially named CEO on Oct. 5 after serving as interim CEO since July, when Dick Costolo left the role. During Twitter's analyst call in July, Dorsey said stagnant user growth was "unacceptable and we're not happy about it," before telegraphing moves to streamline the company.
Twitter in the SEC filing Tuesday said it aimed to focus on the company's top products and become more efficient. Under Dorsey's leadership, Twitter has reorganized some of its top executives, including appointing revenue and partnerships president Adam Bain as COO.
The company also forecast that upcoming third quarter revenues will be at the high end of guidance set at $545 million to $560 million.
Twitter put the cost of its restructuring at between $10 million to $20 million, mostly for severance costs.
Total restructuring expenses are estimated at $5 million-$15 million.
The company expects to recognize most of these pre-tax restructuring charges in the quarter ending Dec. 31, 2015.
Following the news, Twitter's stock price was up 5 percent in morning trading on Tuesday to $30.19 a share, an increase of $1.41.