The stock price of Twitter (NYSE:TWTR) closed $30.84 per share, up by 1.73% on Friday, but it went down after-hours due to the report that it is planning to cut jobs next week.
The shares of the company fell almost 3% to $29.95 per share around 7:46 in the evening in New York.
Twitter to cut jobs in all departments
Twitter’s impending job cuts will affect most if not all of its departments, according to Re/code based on information from several sources. However, it is unclear how many employees will be eliminated.
The social media company has 4,200 employees worldwide during the previous quarter, which was more than double its size (2,000 employees) in the second quarter of 2013. It is important to note, that Twitter made several acquisitions over the past two years, which is one of reasons why the number of its employees increased significantly.
Over the past year, Twitter has been restructuring its product and engineering department to improve its efficiency. The sources suggested that many of the company’s engineers will be affected by the workforce reduction.
Twitter named Jack Dorsey as permanent CEO
The move comes after the board of directors of Twitter officially named its co-founder Jack Dorsey as permanent chief executive officer and Adam Bain as chief operating officer.
In August, Mr. Dorsey reorganized the company’s product team. Mr. Dorsey recently stated that his focus is to “build teams that move fast and learn faster.
They will work forward on making Twitter “easy to understand by anyone in the world, and to give more utility to the people who love to use it daily.”
“We’re working hard at Twitter to focus our roadmap on a few things we can make really great. And we’re strengthening our team along the way,” said Mr. Dorsey.
Twitter CEO will implement big changes
Twitter’s product lead Kevin Weil recently stated that Mr. Dorsey is encouraging them to challenge their assumptions in response to a question whether or not the company is willing to remove its 140-character limit on tweets, during an interview at the Code/Mobile conference.
Mr. Weil said “We’re not shy about changing something that’s at the core of Twitter.” He added that Mr. Dorsey considers himself as an editor, asking questions, providing direction, and focusing on the big picture. The CEO is
In a separate interview with CNBC, Twitter co-founder Evan Williams said, “We have to focus on being bold and being innovative and Jack is ready to unleash that. I think there is so much potential in Twitter that we haven’t yet unveiled.” He added that Mr. Dorsey will implement big changes in months.