Twitter, the 140-character social media platform, announced Tuesday it will cut nearly eight percent of its 4,100-person global workforce as part of a corporate restructuring effort under new CEO and Twitter co-founder Jack Dorsey. Employees were notified of the pending reductions the same day Twitter filed an 8-K with the U.S. Securities and Exchange Commission.
Founded in 2006, Twitter rose to success as part of the social media boom, but has struggled recently as user growth has declined. As of Tuesday morning, Twitter remained in the top 25 free apps for iOS users and in the top 50 apps on Google Play, according to app chart tracker App Annie.
The cuts come as the company seeks to refocus around its “top product priorities and drive efficiencies,” the company said in its 8-K filing. The company said it plans to invest any savings stemming from the cuts back into its “most important priorities to drive growth.”
The restructuring will result in estimated cash expenditures between $10 to $20 million for severance costs, but the company said it still expects revenues for the third quarter of 2015 to be “at or above the high end of the previously forecasted ranges of $545 million to $560 million.” In July, the company posted a loss of $136.7 million for the latest quarter despite investments aimed at growth.
Twitter will announce its final third quarter results on Tuesday, Oct. 27, the company said.
Twitter’s stock plunged nearly seven percent Monday after Re/code reported the potential for cuts, but rebounded slightly in after-hours trading on Tuesday morning.