Twitter plans company-wide layoffs
Since Twitter’s launch in 2006, it became a global hit, but its growth eventually slowed and it is yet to turn profitable.Reuters

Social media company Twitter is planning company-wide layoffs next week, in line with chief executive Jack Dorsey's strategy to make the company more focused. In June, Dorsey said that the social media company was required to do a better job of "clarifying ownership" around projects.

Following this, Dorsey restructured Twitter's product team in August and it now appears that the remaining staff will be reshuffled as well, according to technology news website Re/code. Though it is unclear on the number of employees that will be let go, it will likely affect most, if not all departments.

This move follows co-founder Jack Dorsey returning permanently to the company last week. He ran Twitter between 2007-2008 as its CEO and served as interim CEO executive after Dick Costolo resigned in June.

Since Twitter's launch in 2006, it became a global hit, but its growth eventually slowed and it is yet to turn profitable and is also currently struggling to expand its user base. It has 316 million active monthly users according to its website.

The social media company is already in the process of restructuring its engineering organisation aiming to make it leaner and more efficient. This planned layoff could primarily impact engineers which constitute for about half of the company's staff.

While the company's headcount has increased from 2,000 in the second quarter of 2013 just before its IPO, to roughly about 4,100 as reported last quarter, its user base has grown less than 50% in the same time.

While Twitter's multiple acquisitions over the last two years have also accounted for the increased headcount, those close to the company have argued that the company has become too bloated and that its engineering team is much larger than it needs to be.

Twitter's stock fell by more than 3% on this news.