The Twitter (NYSE:TWTR) story keeps getting worse. Bloomberg has reported that the San Francisco-based firm is likely to reduce its workforce by 300 as early as this week. This would be 8 percent of the number of their employees. The figure could eventually be even higher. Twitter may make the announcement before releasing their earnings for the third quarter on October 27.
A spokeswoman of the company did not comment on this report. Last year, once again in October, Twitter had asked 336 people to go just after Jack Dorsey became the CEO.
Twitter has been making a loss for a long time now. Its stock has also spiraled down. Involvement has remained limited to politicians, celebrities, and reporters, even as rival Facebook’s popularity has exploded.
The Sale That Didn’t Go Through
The business recently hired bankers to look at the possibility of a sale. The initial reports had been good, as a lot of businesses, such as The Walt Disney Co., Salesforce.com, Verizon, Microsoft, and Google had expressed their interest. But all of them backed out, one after the other. Analysts said that Twitter was asking for too much money. The business is unprofitable, after all.
The business is still looking for a buyer for the funds it needs to bring in video.
Twitter Wants Video Integration
But in recent months, the business is busy trying to turn it turn around by integrating video into the platform. They have already hired the founder of AngelHack, Gregory Gopman for their VR or virtual reality initiatives. He has also worked with UploadVR, a news site in the Bay Area. Twitter wants to integrate 360-degree video live streaming and 360-degree video integration. And in June, Alessandro Sabatelli, a designer with Apple, was also brought in for live experiences.
The upcoming job cut is their latest effort to control spending, as the revenues are not growing. If Twitter (NYSE:TWTR) asks its people to go, then it is a clear indication that they are not in a position to beat the profit estimates as reported by the analysts.
Its stock has come down by a staggering 40 percent in the last 12 months. The outlook, at least, in the mid-term, does not look too good as well. It could change dramatically, though, if Twitter reports better than anticipated results on Thursday. But it is extremely unlikely that this is going to happen.