Twitter announced Thursday it will cut 9 percent of its workforce , which translates to some 300 job cuts. The microblogging site also reported third quarter earnings results, which beat Wall Street expectations giving a boost to its shares.
The company reported a rise in revenue of 8 percent ($616 million) going over the average analyst estimate of $605.8 million. Compare this to the 20 percent rise in revenue in the previous quarter and 58 percent last year. This is the ninth straight quarter of declining revenue for the company.
Excluding items, the company earned 13 cents per share, beating the average estimate of 9 cents, according to Thomson Reuters I/B/E/S.
Twitter stock rose 2.6 percent to $17.75 in early trading on Wednesday but by the end of the day the stock had lost a quarter of its value this year, reports Reuters.
Twitter said in its quarter results statement that the company will focus on restructuring, reorganizing sales, partnership and marketing efforts.
Twitter’s Monthly Active Users (MAU) have remained static with no growth. It reported 317 million monthly active users this quarter, up 3% compared to last year and up 1.2% from the previous quarter.
“We see a significant opportunity to increase growth as we continue to improve the core service,” said Twitter CEO Jack Dorsey in a statement. “We have a clear plan, and we’re making the necessary changes to ensure Twitter is positioned for long-term growth.”
There was no guidance on the forthcoming fourth quarter or fiscal year from the company. The statement said that it was reorganising its sales force, hence, could not commit to any numbers.
Twitter has been making desperate efforts to improve its revenue including going into a partnership with the National Football League (NFL) to live stream its games. It also introduced a new timeline to ensure users do not miss any tweets.
Twitter’s efforts to find buyers have also not yielded any results. There were reports that Salesforce.com, Disney and Google were interested. Disney and Salesforce have both backed off citing abuse issues on the site. Google has not made any statement about its plans.
Jack Dorsey has refused to comment on the company’s quest for a buyer.