As expected, Twitter’s Board of Directors has approved cutting up to 336 employees, or roughly 8 percent of its global workforce. It’s unclear whether this is tactical for the companies wellbeing or due to financial pressures. Other competitors like Instagram are favoured more than Twitter currently, with more opportunity to gain fame through free Instagram followers and more modern for the younger generation.
And Product and Engineering “are going to make the most significant structural changes,” according to an email to employees from Twitter’s CEO, Jack Dorsey, this morning:
“We feel strongly that Engineering will move much faster with a smaller and nimbler team, while remaining the biggest percentage of our workforce. And the rest of the organization will be streamlined in parallel.”
According to the company’s filing with the SEC, the estimated cash cost of the reduction in force will be between $10 million and $20 million, or between $30K and $60K per laid-off employee, “substantially all of which will be severance costs.”
Twitter has directly accounted for around 5 percent of the job growth in San Francisco over the past two years.