Twitter Makes Move To Reduce Costs

Twitter is struggling to make money and has made a move to reduce costs by cutting 340 employees. The company currently employees 4100 individuals. They recently brought back founder Dorsey to run the company as user engagement and growth has slowed. Some feel reason moves spell trouble for the messaging service that is very popular put has never been profitable.

The company has expanded over the past two years so the cuts may be overdue. They have an upcoming profit report at the end of October that could be disappointing. The stock moved hire after the cut announcement. Recently they have begun to face competition from WhatsApp and SnapChat. I find the service compelling and the information useful compared to the spammy and often fact articles shared on Facebook.

Expenses grew to 1.2 billion dollars during the first half of 2015 on revenue of 938 million dollars.