Dorsey On Job Cuts: 'A More Focused Twitter'
Twitter Inc (NYSE: TWTR) made a splash on Tuesday morning when it announced a restructuring of its workforce and issuing guidance at the high end of estimates.
Shares rose more than 5 percent in the pre-market session.
Twitter will cut about 8 percent of its workforce, or up to 336 employees. In an memo to employees, CEO Jack Dorsey said, "Product and engineering are going to make the most significant structural changes to reflect our plan ahead," while noting the company has been working "around the clock to produce [a] streamlined roadmap for Twitter, Vine, and Periscope."
The company launched Moments last week in hopes of attracting more users and advertisers.
The 8K filing showed Q3 revenues at the high end of $545-$560 million, with adjusted EBITDA at the high end of the previously announced $110-$115 million. The company anticipates about $10-$20 million cash expenditures related to the restructuring.
Twitter's investor relations account said the company will further discuss its Q3 2015 financial performance on its earnings call on October 27 at 2 p.m. PT.
Shares of Twitter spiked to $30.82 shortly after the filing was released. The stock recently traded at $29.75, up about 3.5 percent as of 8:47 a.m. ET.
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