On Monday we learned that Twitter was making co-founder Jack Dorsey officially the CEO again, and that the company was immediately ditching plans for an expansion into some extra office space on Market Street. Now Re/Code is reporting that Dorsey's other big move now that he's CEO will be to lay off a bunch of people. It's unclear how many, but "multiple sources" confirmed that layoffs are coming next week, and the culling "will likely affect most, if not all, departments."
Dorsey, they say, "isn't afraid to make the tough, necessary decisions," and that's why he was brought back on as CEO.
It's hard not to see this as a significant signpost in these bubbly times, and as an echo of events in the last boom. I don't think any of us saw this coming two years ago when Twitter had their IPO. Well, actually, maybe Phil Matier did. Writing about an impending bust on the day of their IPO, he said, "The money is coming ... The question is: how long does it last? And will there be a hangover from it?"
Twitter presently has about 4,200 employees, and as Re/Code notes there has been plenty of talk, internally, about the company being too bloated. And this all comes at a time when Twitter's growth has slowed and their stock price has been tanking.
The layoff rumor appears to have spurred some after-hours selling too, and the stock price has dipped below $30 in after-hours trading Friday after closing up half a point at $30.84.