Twitter (NYSE:TWTR) to Slash 8% of its Workforce

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Twitter (NYSE:TWTR) made a major announcement on Tuesday, but it had nothing to do with new technologies or features. Instead, the micro-blogging company announced that it would be cutting 8% of its workforce, up to 336 people.

The layoffs are a part of CEO Jack Dorsey’s restructuring plan, and Dorsey states that the move will allow for stronger growth of the social network. Dorsey reaffirmed the layoffs on Twitter and in a memo sent out to employees.

The company is apparently working “around the clock” to create a plan for Periscope (its live broadcast service), Vine (its video app), and of course, Twitter itself.

In his memo, Dorsey stated that the product and engineering departments will make significant structural changes that reflect the new plan. He went on to say that the company feels the engineering department will move faster with a smaller team. The remainder of the organization will be streamlined as well.

Following the announcement, shares jumped 3.2% in premarket trading.

The move is one of Dorsey’s first official acts as CEO of twitter, and he plans onimplementing a number of cost-cutting measures. Aside from the layoffs, the company will also be scratching the expansion of its headquarters in San Francisco.

Dorsey, the company’s co-founder, served as interim CEO from July through early October when he was finally named permanent CEO.

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