In the latest development in the ongoing drama engulfing Twitter, the social media site’s shares shrunk significantly today, following news that layoffs across the company should occur this week.
The initial report from Re/code that Twitter’s recently-appointed permanent CEO, Jack Dorsey, was lining up job cuts was published on Friday, but after the market closed. Today, Twitter’s stock price fell by 6.8%.
The Wall Street Journal has quoted Citigroup Inc. analyst Mark May observing that “much work and possible near-term disruption will be required to achieve the type of long-term improvements hoped for by management, the board, and by investors”.
Twitter’s stock has already tumbled by 20% this year, largely resulting from unimpressive user growth and expectations of shrinking advertising revenues. It all suggests that Dorsey could have a difficult job on his hands in the early weeks and months of his leadership – particularly at his company’s earnings call and during questioning by analysts, both on October 27.