The social networking cum microblogging site Twitter has its focus set upon profit making. As the management undertakes preparation and planning for 2017, the stage looks set for the implementation of a couple or more of strategy decisions. As per the recent announcements that have been made, the facility made it clear about reducing its workforce. The company believes that the reduction will help boost the profitability. In view of this, it has decided to retrench nine percent of the total workforce.
A New Thrust
The purpose has been made clear in the course of the announcement. The objective is to minimize expenditure and boost growth and profitability. It is obvious that the decision to retrench the workforce is going to serve as an effective cost-cutting drive. The management also seeks to give a new edge to its sale and business because the focus is on long-term expansion and growth. Previously, the company might have failed to fulfill its growth expectation, but now, with the new-found focus and clarity that seemed to be a story of the past.
Looks All Set
It is a fact that the management seems a lot more focused, clear and confident than before. It seeks to turn a new leaf on earning and profit making. The board of directors also reiterated its commitment towards the shareholders, particularly those who have been associated with Twitter, over a long span of time. The reaffirmed the need for protecting the interest of the shareholders by maximizing the value. The board is also serious about implementing the recently introduced cost-cutting logistics. It is easy to understand how the decision to retrench the workforce will ultimately affect the sales drive of the company.
Reorganization is on the Card
The matters related to marketing, partnership, and promotion will also be affected by this particular cost-economizing measure (reduced workforce). In view of the reduction that is going to be introduced, the management has also expressed the need for reorganizing the different teams, particularly that looking after sales. The divisions dealing with partnerships, promotion, and marketing, will also be reorganized, and resources from these divisions will be used for building up the sales department.
Enhanced User Base
In this context, it is worth mentioning, that almost a year ago, the company had decided to part with as many as three-hundred and thirty-six employees. The concluding quarter saw a prolific rise in the number of users, with almost three hundred and seventeen million active users participating in the blogging site. The decision to use live videos has been attracting more and more users. So, Twitter has decided to cash in on the trend by investing in videos and thus coming into an open competition with the online video channels.
