Öykü Altuntaş / Istanbul, Oct 13 () – Social media giant Twitter’s CEO Jack Dorsey approved a plan laying off 8 percent of its global workforce, 336 people, within restructuring in the company.
According to Fortune business portal, there were already rumors that Dorsey was planning to slim the firm, pointing to a “bloated company”, in words of several critics.
This signals of reduction was approved early on Oct. 13 in a Form 8-K filing, with the U.S. Securities and Exchange Commission.
"Smaller and nimbler"
According to the memo announcing the restructuring plans released by Twitter’s CEO, “On Oct. 12, 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” stated the announcement.
The cuts are expected to largely influence engineering and product departments, or in Jack Dorsey's words become "smaller and nimbler", while ther departments will be "streamlined".
10 million and 20 million dollars to incur in severance costs
While Twitter seeks to “reinvest savings in its most important priorities to drive growth”, the cuts are expected to incur between 10 million and 20 million dollars in severance and related costs of employees laid off.
Shares of Twitter has fell almost by 7 percent to 28.74 dollar, as investors took the cuts as a response to revenue pressure.
Having referred to the cuts, Dorsay said the step was “not easy, but right”.