Twitter Job Cuts

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Social media giant Twitter is now set to cut around 350 jobs – approximately 9% of its 3,860 workforce – after reporting falling profit margins and a significant slowdown in revenue growth.

The announcement, according to the BBC, comes after plans to sell Twitter crumbled earlier this month, with the only remaining major bidder – Salesforce – walking away from the deal, causing share prices in Twitter to drastically plunge by 7%.


Even though Twitter reported a rise in revenues of around 8% in the 3 months to September landing them with a profit of $616million, this was significantly lower than the 20% rise in the previous quarter.

On top of this, Twitter has had a tough time attracting new talent into the business as well as maintaining its staff. According to the Telegraph, as Twitter share prices have taken a hit recently,  the company is becoming less and less desirable as an employer in comparison to other social media giants such as Facebook and Google.

Raising profit margins

For Jack Dorsey, CEO of Twitter, the redundancies are part of the company’s plans to streamline operations and boost profitability, as he explained:

“We see a significant opportunity to increase growth as we continue to improve the core service.”

“We have a clear plan, and we’re making the necessary changes to ensure Twitter is positioned for long-term growth.”

Around the same time in 2015, Twitter made 336 employees redundant following Jack Dorsey’s  hiring as CEO. In another blow to its already fragile condition, Jack recently confirmed that Twitter plans to ‘discontinue’ its video app Vine, without commenting on why this was happening.

Deana Bates, Solicitor in Employment Law at Simpson Millar, comments:

“When making redundancies on this scale, it’s important for big companies like Twitter to follow the correct procedures and ensure that they have the appropriate discussions with every employee.”

“Even though Twitter believes these redundancies are necessary to maintain a successful business, this offers little comfort to the hundreds of members of staff who will be left jobless in such tough economic times. It is important when communicating a redundancy of any scale to be as transparent as possible with the employees concerned. This approach not only ensures that they understand the rationale behind the decision, but also goes someway to upholding the reputation of the business as an employer and avoid (as much as possible) portraying an image of instability to the remaining employees. “

“I often work closely with employers who are initiating or are in the midst of the redundancy process, and always advise them to map out a clear process and stick to it. This process will involve engaging with employees and/or their representatives throughout. Communication is key in processes such as redundancy and carrying out the process in a fair and transparent manner can often limit the amount of doubt in an employee’s mind, which can often lead to them lodging an appeal and/or challenging the process where they are unclear on their position.”

Written by Deana Bates.

For more information on employment law and the services offered by Simpson Millar, please call:

0808 129 3304

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