Twitter to Lay Off 9% of Staff

SAN FRANCISCO —¬†Twitter announced it would cut about 350 jobs following its third-quarter earnings report.

The Internet-messaging service posted quarterly revenue of $616 million, up 8% year-over-year. Quarterly GAAP net loss was $103 million, with quarterly non-GAAP net income of $92 million, or $0.13 per diluted share. Average monthly active users (MAUs) were 317 million for the quarter, up 3% year-over-year and compared to 313 million in the previous quarter. Average daily active usage (DAU) grew 7% year-over-year, an acceleration from 5% in Q2 and 3% in Q1.

Advertising revenue totaled $545 million, an increase of 6% year-over-year. Mobile advertising revenue made up 90% of total advertising revenue. Data licensing and other revenue totaled $71 million, an increase of 26% year-over-year. U.S. revenue totaled $374 million, an increase of 1% year-over-year. International revenue totaled $242 million, an increase of 21% year-over-year.

Twitter said it would restructure and reduce its headcount by 9% of its global workforce. The restructuring, which focuses primarily on reorganizing the company’s sales, partnerships, and marketing efforts, is intended to create greater focus and efficiency to enable Twitter’s goal of driving toward profitability in 2017.

“Our strategy is directly driving growth in audience and engagement, with an acceleration in year-over-year growth for daily active usage, Tweet impressions, and time spent for the second consecutive quarter,” said Jack Dorsey, Twitter’s CEO. “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. The key drivers of future revenue growth are trending positive, and we remain confident in Twitter’s future.”

“We’re getting more disciplined about how we invest in the business, and we set a company goal of driving toward GAAP profitability in 2017,” said Anthony Noto, Twitter’s CFO. “We intend to fully invest in our highest priorities and are de-prioritizing certain initiatives and simplifying how we operate in other areas. Over time, we will look to invest in additional areas, as justified by expected returns and business results. In addition, our live strategy is showing great progress. We’ve received very positive feedback from partners, advertisers and people using the service, and we’re pleased with the strong audience and engagement results.”

The company also said it would discontinue the video service Vine, which lets users post video clips of six seconds or less.