Twitter announced Thursday it will cut 9% of its global workforce after the social media service announced another quarter of slower growth in revenue and users.
In a statement announcing third quarter financial results, Twitter says the restructuring will focus on reorganizing sales, partnership and marketing efforts.
"We see a significant opportunity to increase growth as we continue to improve the core service," said Twitter CEO Jack Dorsey in a statement. "We have a clear plan, and we’re making the necessary changes to ensure Twitter is positioned for long-term growth."
Twitter's workforce cuts will affect nearly 350 people. The company employs 3,860 people worldwide. Twitter says the reduction will also create "greater focus and efficiency" to move closer to making a profit next year.
For the quarter, Twitter reported third-quarter revenue of $616 million, beating estimates of $605.5 million. It's the smallest revenue gain since going public and the ninth straight quarter of declining growth.
Twitter also reported non-GAAP earnings of 13 cents of shares, topping forecasts of 9 cents. When including expenses, Twitter reported a loss of 15 cents a share. The company did not offer guidance for the fourth quarter or fiscal year, citing the reorganization of its sales force.
Shares of Twitter jumped more than 5% in pre-market trading.
Growth among monthly active users remains flat. Twitter reported 317 million monthly active users (MAUs) during the quarter, up 3% compared to last year and up 1.2% from the previous quarter.
Twitter introduced several changes in order to simplify the service and attract more users. Earlier this year, Twitter updated home timelines to include tweets users may have missed while away from the service.
Meanwhile, the company launched its partnership with the National Football League to being airing live Thursday Night Football games directly on Twitter.
For weeks, Twitter had been the subject of acquisition rumors including companies such as Disney, Google and Salesforce.com. Last week, Salesforce.com CEO Marc Benioff confirmed it was backing away from a deal because "it wasn't the right fit for us."
A report from Bloomberg claims Disney bowed out over concerns with how Twitter handles harassment and abuse on its service. In a letter to shareholders issued with earnings results Thursday, Twitter says they will share "meaningful updates" next month to the service's safety policy and enforcement strategy.
At the start of Twitter's earnings call, Dorsey said he would no longer discuss reports of a possible acquisition. "Our board is committed to maximizing long-term shareholder value," said Dorsey. "I don't plan to comment any further on this topic."
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