Twitter had a global head count of 4,100 as of June 30, roughly half of whom are engineers, while its user base is 316 million monthly active users.
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Mr Dorsey has also admitted that Twitter was still too hard to understand for many users.
Shares of the social media company were up about 2.5 percent in the premarket.
According to Dorsey, the job cuts will most heavily affect Twitter’s product and engineering teams. And the rest of the organization will be streamlined in parallel.
The company declined to say how many of those layoffs will come from its San Francisco headquarters or how much money it will save from restructuring, saying that it had nothing to add beyond the filing. Twitter stock has been down 20 percent in 2015 thus far and the end of the year doesn’t look all that promising. On Tuesday morning, Twitter shares got to as high as $36.01.
Jack Dorsey, Twitteré¢âTMs co-founder and newly appointed chief executive, speaks at a promotional event in New York, October 8, 2015.
Although Dorsey was only confirmed in his role as CEO last week, he has been filling in since Dick Costolo stepped down on July 1, and so has had ample time to influence the company’s strategy.
In a letter to employees, Mr Dorsey said the company was “moving forward with a restructuring of our workforce”. Twitter eased those worries Tuesday by disclosing that its revenue for the period will hit or slightly exceed its previously target of $545 million to $560 million. The main challenge: Twitter faces growing competition for advertising dollars and people’s attention from Snapchat, Facebook and the Facebook-owned services Instagram and WhatsApp.
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Twitter is expected to shell out up to $15 million in severance payments. “We will honor them by doing our best to serve all the people that use Twitter”.
