Business in Tech

Twitter’s Decision To Fire 300 Employees Is A Temporary Pain Reliever

Since the news that the last Twitter potential buyers may not be interested in the deal after all, a lot has happened since then. Well for starters, the entire tech world is waiting to see what Twitter earnings report will be like on the 27th which is the day after tomorrow.

On the news before that day is that the microblogging site is going to fire about 8 percent of its work force to cope with the idea of managing itself for now. Bloomberg reports that Twitter may cut about 300 jobs as soon as this week and I suspect it could be Friday which is a day after its earnings report.  This won’t be the first time Twitter would be doing this. Last year when current CEO Jack Dorsey took over, they cut jobs as well and we’re told it was about 8 percent of the entire work force too.  

” Twitter, which is unprofitable, is trying to control spending as sales growth slows. The company recently hired bankers to explore a sale, but the companies that had expressed interest in bidding — Salesforce.com Inc., The Walt Disney Co. and Alphabet Inc. — later backed out from the process… Twitter shares fell as much as 4.9 percent Tuesday. They were down 4.2 percent to $17.28 at 11:16 a.m. in New York.”

The loss of 40 percent of its share price over the last one year has made it a difficult company to sell and this means they don’t have enough to compete with the likes of Google and Facebook who have a really aggressive attitude towards attracting new talents. So for now, maybe allowing more employees to go could salvage the situation temporarily.

Twitter’s reported asking price of $20b-$30b could be too high for potential buyers too and maybe someone is waiting for the right time and you know what that means in business.

In one of our other articles, we said Twitter’s history of abuse was also a major factor in the way it is seen by potential buyers like Walt Disney who are known more to have a family audience.