Twitter Plans Revamp With Job Cuts And Vine Shut Down
Twitter is set to cut 350 jobs and will close the Vine video sharing app as part of a plan to revamp and become profitable, following unsuccessful takeover discussions.
The job cuts make up about 9 per cent of the company’s international workforce. Twitter announced revenue of US$616 million in its third-quarter results, up 8 per cent year-on year. Net loss was $103 million, or 15 cents a share, improving on estimates of 19 cents a share.
Plans to shut down the Vine video sharing service, which Twitter acquired before its official launch in October 2012, are part of the company’s strategy to focus on the core business.
“We intend to fully invest in our highest priorities and are de-prioritizing certain initiatives and simplifying how we operate in other areas,” said Twitter’s CFO Anthony Noto.
Vine found significant popularity, letting users easily share six-second videos with a wide audience, but the service was not profitable for Twitter. Vine said that the mobile app will be discontinued sometime in the coming months.
“We’ll be keeping the website online because we think it’s important to still be able to watch all the incredible Vines that have been made,” Vine said in a statement.
Reports had suggested a number of bidders had taken interest in Twitter, including Apple, Disney and Google, with enterprise software maker Salesforce showing the most interest. Salesforce’s chief executive Marc Benioff told The Financial Times in mid-October that Twitter “wasn’t the right fit” for his company.
Twitter added four million users in the third-quarter for a total of 317 million, an increase of 3 per cent from last year.