Twitter to Begin Layoffs Soon, Analysts Bullish
- Updated: October 10, 2015
So much for easing into your new job. Just days after being named permanent chief executive of Twitter, Jack Dorsey is planning a series of cost-cutting moves including layoffs and halting a plan to expand the company’s San Francisco headquarters. Twitter has more than 4,100 employees in more than 35 offices.
The layouts could begin as soon as Tuesday. Dorsey cofounded Twitter and had held the interim chief title since July. Twitter went public in 2013 in a wave of hype, its stock price has more recently fallen at one point dropping below its $26 initial public offering price as the company has struggled to attract new users.
“Twitter is clearly going through a transition, a new CEO, new products, and this restructuring is another avenue they will need to go down,” said Brian Blau, a technology analyst at Gartner. “Reducing costs by reductions is always tough, but a better focus on execution and innovation will help them in the long run.”
Twitter reported that cost and expenses totaled $633 million up 37% from your. The layoffs will affect multiple areas, including the engineering and media teams.
“My focus is to build teams that move fast, and learn faster,” Dorsey tweeted in several messages Monday. “We’re working hard at Twitter to focus our road map on a few things we can make really great.”
Analysts have varying opinions on Twitter stock according to marketbeat.com – Brean Capital reiterated a buy on the stock earlier this week with a price target of $47
Consensus Ratings for Twitter (NYSE:TWTR)
|Ratings Breakdown:||25 Hold Rating(s), 17 Buy Rating(s), 1 Strong Buy Rating(s)|
|Consensus Rating:||Hold (Score: 2.44)|
|Consensus Price Target:||$40.98 (32.84% upside)|
Twitter, Inc. (Twitter) is a global platform for public self-expression and conversation in real time. The Company offers products and services for users, advertisers, developers and platform and data partners. Products and services for users enables a way for people to create, distribute and discover content, which enables a user on Twitter to create a tweet and a user to follow other users. Products and services for advertisers consist of promoted products, which enable its advertisers to promote their brands, products and services, and extend the conversation around their advertising message. Products for platform partners and developers provide a set of tools, public application program interface (APIs) and embeddable widgets that developers use to contribute their content to its platform, syndicate and distribute its content across their properties. Products for data partners offer subscription access to its public data feed.
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