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Twitter beats estimates, cuts jobs

Thursday, October 27, 2016 - 01:18

Twitter cuts nine percent of its global workforce to keep costs down even as quarterly results eclipse Wall Street's expectations. Jeanne Yurman reports.

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As potential buyers backing off, Twitter says it's cutting nine percent of its global workforce - or 300 jobs - to keep costs down. The move is part of broader restructuring and similar in size to an earlier round of reductions announced a year ago. News of the layoffs comes as the microblogging site reported third-quarter revenue growth that slowed sharply, but topped analysts' forecasts. That helped Twitter shares rebound after falling in its recent failed effort to sell the company. Scott Kessler of CFRA Research: (SOUNDBITE) SCOTT KESSLER, DEPUTY GLOBAL DIRECTOR, EQUITY AND INDUSTRY RESEARCH, CFRA RESEARCH, (ENGLISH) SAYING: "Twitter is seen decelerating revenue growth every quarter since the second quarter of 2014. At that point, I think, growth was around 125 percent, and then this morning they reported Q3 growth well below ten percent. So, clearly, that's something that, I think, people have been worried about, and something that, I think, Twitter is taking action to address." Twitter is also shutting down Vine, a video app launched in 2013 that played brief clips on a repeat loop. Vine has struggled to compete with Facebook's Instagram.

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Twitter beats estimates, cuts jobs

Thursday, October 27, 2016 - 01:18