In what would be the biggest change ever since Jack Dorsey took charge of Twitter, the company has decided to lay off as many as 336 employees, that sums up to 8% of the Twitter’s total global workforce, in a bid to make some crucial internal restructuring and help Twitter move more quickly, internally.
This news comes out as a result of a filing submitted to the Securities and Exchange Commission by Twitter today morning. Dorsey’s new move will largely snatch the jobs of engineers as he thinks that a smaller engineer team would perform much better.
As stated in the letter shared by CEO Jack Dorsey –
Product and Engineering are going to make the most significant structural changes to reflect our plan ahead. We feel strongly that Engineering will move 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.
Twitter, for some time, has been thriving hard to improve on its monthly active users, which has been stagnant for last few months. This has become a major point of concern for investors who have lately been putting pressure on Twitter. However, both investors and board members were highly inclined to have Dorsey as their main man due to his experience and familiarity with Twitter since the beginning.
Twitter has indeed been making rapid changes over the last few months and has grown its advertising business substantially in three months with revenue advertising revenue rising to 63% from the same period a year earlier to $452 million.
It is yet to be seen what impact does this move makes on Twitter’s revenue, monthly active users and its stronghold in the market.
Here’s the full letter for your reference –
From: Jack Dorsey
To: All Employees
Date: October 13, 2015
Subject: A more focused Twitter
We are moving forward with a restructuring of our workforce so we can put our company on a stronger path to grow. Emails like this are usually riddled with corporate speak so I’m going to give it to you straight.
The team has been working around the clock to produce streamlined roadmap for Twitter, Vine, and Periscope and they are shaping up to be strong. The roadmap is focused on the experiences which will have the greatest impact. We launched the first of these experiences last week with Moments, a great beginning, and a bold peek into the future of how people will see what’s going on in the world.
The roadmap is also a plan to change how we work, and what we need to do that work. Product and Engineering are going to make the most significant structural changes to reflect our plan ahead. We feel strongly that Engineering will move 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.
So we have made an extremely tough decision: we plan to part ways with up to 336 people from across the company. We are doing this with the utmost respect for each and every person. Twitter will go to great lengths to take care of each individual by providing generous exit packages and help finding a new job.
Let’s take this time to express our gratitude to all of those who are leaving us. We will honor them by doing our best to serve all the people that use Twitter. We do so with a more purpose-built team, which we’ll continue to build strength into over time, as we are now enabled to reinvest in our most impactful priorities.
Thank you all for your trust and understanding here. This isn’t easy. But it is right. The world needs a strong Twitter, and this is another step to get there. As always, please reach out to me directly with any ideas or questions.