Twitter said Tuesday that it would be laying off up to 8% of its employee’s as part of an organizational restructuring within the company that CEO Jack Dorsey has said will place the social network “on a stronger path to grow”.
Pre-market Tuesday shares of Twitter went up to 3.2% but later settled down to 1.11% when the markets had closed for the day.
“We are moving forward with a restructuring of our work force so we can put our company on a stronger path to grow,” Jack Dorsey wrote in an email to employees. “We feel strongly that Engineering will move much faster with a smaller and nimbler team, while remaining the biggest percentage of our work force. And the rest of the organization will be streamlined in parallel.”
Twitter is one example of a company growing the work force too quickly over the recent years via hiring and acquisitions. In the spring of this year they had more than 4,100 employee’s on record which was a 24% increase from spring of 2014.
The social media company has also had a hard time finding a profitable means for the company ever since the company started. Turning a profit continues to be an issue but they are pushing hard on their new road map and making changes to be more efficient which will save costs in the long run.