Twitter has announced it is cutting more than 300 jobs, or roughly 8% of the company’s global workforce.The layoffs signal chief executive Jack Dorsey’s resolve to slash costs as Twitter struggles to make money.
The tech company announced last week its co-founder was returning for a second stint as CEO amid mounting concerns over slowing growth.
In a letter to employees, Mr Dorsey said a more streamlined company would lead to more products rolling out more quickly.
He wrote: “We feel strongly that engineering will move much faster with a smaller and nimbler team.”
Twitter’s workforce has nearly doubled over the past two years to 4,100 employees worldwide.
In the nine years since Mr Dorsey and his partners launched the short messaging service, Twitter has lost nearly $2bn (£1.3bn) and investors are worried third-quarter results for this year will bring more disappointment.
There are currently more than 300 million Twitter users but growth has slowed, even as people spend more time online, particularly on their smartphones.
Facebook by comparison has 1.5 billion people on its online social network and even its photo-sharing application, Instagram, has surpassed Twitter in size.
Richard Windsor, a research analyst with Edison Investment, said Twitter’s layoffs could be a sign of desperation at a sinking company.
He said: “It is important to run a tight ship, but simply cutting jobs is often the action of a company that does not know what else to do.”
While the job cuts could boost profits, it could also signal a desire to scale back on the company’s long held goal of aggressive growth and a larger audience.