Twitter to cut 8pc of workforce

Twitter said Tuesday it was slashing eight percent of its workforce as newly returned chief executive Jack Dorsey outlined his "roadmap" to boost users and revenues at the money-losing messaging platform.

The cuts -- which amount to 336 jobs -- come less than a week after Dorsey, one of the founders of Twitter, returned to the job of CEO on a permanent basis as part of an effort to revive growth at the San Francisco-based social network.

"Made some tough but necessary decisions that enable Twitter to move with greater focus and reinvest in our growth," Dorsey said in a tweet announcing the plan.

In a letter to employees, Dorsey said his team is working "to produce a streamlined roadmap" for Twitter and its other services including video-sharing platforms Vine and Periscope.

"The roadmap is focused on the experiences which will have the greatest impact," he said in the letter.

"The roadmap is also a plan to change how we work, and what we need to do that work."

One of the key elements unveiled last week was "Moments" a feature that promises to let uses quickly tune in to "the best of Twitter" in an effort to leverage its connections in real-time news.

The San Francisco-based one-to-many messaging platform, which has not yet turned a profit, has struggled to expand its user base above 300 million, lagging rival networks such as Instagram and well behind the much larger Facebook.

Twitter said the layoffs will result in $10 million to $20 million in severance costs, and total restructuring expenses are estimated at $5 million to $15 million. The overall costs may be lower than severance due to recovery of unvested stock awards.

Twitter shares gained one percent to close at $29.06, after trading up as much as five percent during the day. The stock had jumped above $70 two years ago but slumped this year below the 2013 offering price of $26.

Lou Kerner, founder and manager of the Social Internet Fund and a partner in venture investment firm Flight.vc, said the reorganization was "a very positive sign that Dorsey is serious about making the changes, even if they're hard, to make Twitter a great company again."