Business
Twitter to lay off 9% staff, kill Vine app
San Francisco, Oct 28 - In a bid to realign its future goals and cut costs, micro-blogging website Twitter has reduced 9 percent of its workforce (nearly 350 people) globally.
The announcement was made during the company's third quarter (2016) results that beat analysts expectations, leading to a 2 per cent jump in Twitter shares in afternoon trading on Thursday, Recode reported on Friday.
Twitter also killed off Vine, its mobile video app where users share short video clips that play in a loop.
"We have a clear plan, and we're making the necessary changes to ensure Twitter is positioned for long-term growth," CEO Jack Dorsey said in a statement.
The company posted a revenue of $616 million, up 8 per cent year-over-year, and reported net income of $92 million.
Twitter's net loss in the quarter was $103 million, an improvement from a net loss of $132 million in the year-earlier period.
Monthly active users (MAUs) reached 317 million for the third quarter, up 3 per cent from 313 million in the previous quarter.
"We're getting more disciplined about how we invest in the business, and we set a company goal of driving toward GAAP profitability in 2017," CFO Anthony Noto said in the earnings statement.
"We intend to fully invest in our highest priorities and are de-prioritising certain initiatives and simplifying how we operate in other areas," Noto added.
Last year, Twitter had cut 300 jobs after Dorsey took over as CEO full-time.
Twitter had 3,860 employees as of June 30 this year and paid out $168 million in stock-based compensation in the second quarter.
Earlier this month, Twitter's last potential buyer Salesforce also decided not to make a bid to buy the micro-blogging website.
Salesforce CEO Marc Benioff told the Financial Times that he has "walked away" from making a bid to buy Twitter.
Earlier, Google, Apple and Walt Disney also decided not to bid for the website.
The acquisition of Twitter may cost over $20 billion.
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