Twitter to cut 9% of staff in bid to become profitable by 2017

Twitter has been struggling to sign up new users 

The jobs cuts mirror a similar move Dorsey made in October 2015 when he fired 336 people
The jobs cuts mirror a similar move Dorsey made in October 2015 when he fired 336 people

Twitter has announced plans to cut 9 per cent of its global workforce, or about 350 people, as the company struggles to achieve profitability.

Twitter, which has struggled to sign up new users amid competition from number of rivals such as Instagram and Snapchat, said it expects to book about $10m to $20m in workforce restructuring charges.

The jobs cuts mirrors a similar move Dorsey made in October 2015 when he fired 336 people from the company in order to cut costs.

The decision comes as the company reported slightly better-than-expected results on Thursday.

Revenue rose about 8 per cent to $616m in the three months to September, beating the company's own forecast of $590m to $610m.

However, it still represents Twitter’s ninth straight period of slowing growth.

The company also reported 317 million monthly active users, up just 1.7 per cent from the second quarter.

Jack Dorsey, the chief executive of the microblogging site, said: “Our strategy is directly driving growth in audience and engagement, with an acceleration in year-over-year growth for daily active usage, Tweet impressions, and time spent for the second consecutive quarter.”

“We see a significant opportunity to increase growth as we continue to improve the core service. We have a clear plan, and we’re making the necessary changes to ensure Twitter is positioned for long-term growth. The key drivers of future revenue growth are trending positive, and we remain confident in Twitter’s future.”

Twitter results follows weeks of reports that multiple companies including Salesforce, Walt Disney and Google parent Alphabet looked at acquiring Twitter and decided not to offer a bid.

The lack of interest put further pressure on Jack Dorsey, who has struggled to accelerate revenue growth since coming back as chief executive of the company a year ago.

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