Friday 16 October 2015

NDM Story 9: Twitter slashes global workforce as it struggles for growth

http://www.theguardian.com/technology/2015/oct/13/twitter-job-losses-global-restructuring-plan-jack-dorsey


Since the co founder of Twitter, jack Dorsey became the new chief editor, he is planning to make 8% of their global workforce redundant in order to encourage growth. The majority of the reduced will come from the product and engineering sections as they are the biggest sections in the company. They believe that the section will work better with fewer people while still retaining its position as the largest sector. Many changes have been made over the past few months to help the company grow as despite having around 300 million users, this greatly falls behind the number of users for Facebook.
  • about 300 million users
  • n July, it revealed the slowest rise in monthly average users since it went public in 2013. 
  • Twitter has about 4,100 staff globally. 
  • expects the redundancies to cost between $10m and $20m (£6.5m-£13m) in severance money and another $5m-$15m in restructuring costs.
  • Twitter shares had risen 4.9% to more than $30 by noon on Tuesday
  • Up to Monday’s close, its shares had fallen by about 20% this year. 


I believe that this will be a positive change for Twitter as it will give them the opportunity to grow. Despite being very unfortunate to be put in the position of being redundant, the company needs to do whatever they can in order to increase the growth of Twitter.



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