Twitter is a company in trouble, and it knows this. The social media giant is planning to cut its workforce by about 8-percent; which translates into around 300 people losing their jobs.
Business has not been going well for Twitter as it has been steadily losing money since going public. It has also seen a 40-percent dip in its stock price over the last year, which has added to its problems with attracting new talent. Twitter doesn’t have the same monetisation as rivals Facebook, and has been facing declining sales for some time now.
Twitter is set to announce its third quarter earnings later this week, and it looks like the news is not going to be encouraging. The company has looked into the possibility of being sold, but the companies that were interested in placing a bid have backed off.
The microblogging site reports some 313 million active users every month, although it has struggled to turns this number into a positive revenue stream. Part of the problem is the amount of negative press the company receives due to being a platform for harassment. While the company has been taking steps to address the problems, it isn’t doing quite enough to convince potential investors that the controversy is worth wading into.