Twitter to cut 9% of global workforce

Despite ad revenue gains the social media company announced the cuts as part of its third quarter financial results.

Twitter has announced a restructuring and reduction in headcount of about 9% as part of its third-quarter financial report.

The restructuring will focus primarily on reorganizing the company’s sales, partnerships and marketing teams, according to its third-quarter release. The changes are intended to create “greater focus and efficiency,” as well as help the social media company reach its goal of profitability in 2017. Twitter Canada had no comment when asked how the restructuring might impact the company’s presence here.

Overall Twitter posted quarterly revenue of $616 million, up 8% from the same period in 2015. Net loss was $103 million, with net income of $92 million.

Average monthly active users were 317 million for the quarter, up 3% year-over-year and up from 313 million in the second quarter of this year. Average daily active usage was up 7% year-over-year, up from the 5% jump reported in the second quarter of this year and the 3% from the first quarter.

Advertising revenue came in at $545 million for the third quarter, up 6% year-over-year. Mobile ad revenue accounted for 90% of total advertising revenue, up from 89% in the second quarter. Data licensing and other revenue totalled $71 million, up 26% year-over-year. International revenue totalled $242 million, up 21% year-over-year. U.S. revenue was $374 million for the quarter, up 1% year-over-year.

The third quarter results come following a round of takeover interest that has since dried up. According to reports, Salesforce, Disney and Alphabet were all in talks with Twitter, but all have passed on the deal.

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