Twitter to lay off 9% of its staff, discontinue Vine app

The announcement was made during the company’s third quarter (2016) results that beat analysts expectations, leading to a 2 per cent jump in Twitter shares in afternoon trading on Thursday, Recode reported. Twitter also killed off Vine, its mobile video app where users share short video clips that play in a loop. “We have a clear plan, and we’re making the necessary changes to ensure Twitter is positioned for longterm growth,” CEO Jack Dorsey said. 

The company posted a revenue of $616 million, up 8 per cent yearover-year, and reported net income of $92 million. Twitter’s net loss in the quarter was $103 mn, an increase from a net loss of $132 mn in the year-earlier period. Monthly active users (MAUs) reached 317 million for the third quarter, up 3 per cent from 313 million in the previous quarter. “We’re getting more disciplined about how we invest in the business, and we set a company goal of driving toward GAAP profitability in 2017,” CFO Anthony Noto said. 

“We intend to fully invest in our highest priorities and are de-prioritising certain initiatives and simplifying how we operate in other areas,” Noto added. Last year, Twitter had cut 300 jobs after Dorsey took over as CEO full-time. Twitter had 3,860 employees as of June 30 this year and paid out $168 million in stock-based compensation in the second quarter. Twitter’s last potential buyer Salesforce also decided not to make a bid to buy the micro-blogging website.