FIRST AIRED: October 22, 2016

Nice work! Enjoy the show!

×

You’re busy. We get it.

Stay on top of the news with our Editor’s Picks newsletter.

US Edition
Intl. Edition
Unsubscribe at any time. One click, it’s gone.

Thanks for signing up!

We've got more news

Get our editor’s daily email summary of what’s going on in the world.

US Edition
Intl. Edition
Replay Program

Business

With no buyers, Twitter faces tough choices

Opening sequence

Opening sequence

Business

With no buyers, Twitter faces tough choices

0:00
16:52
More Info

COMING UP:With no buyers, Twitter faces tough choices

×

Transcript

00:00:00
>> Without a buyer in sight, Twitter may have no choice but to take the route of, yes, restructuring. That means heads belonging to many of its nearly 4000 employees could roll. The beleaguered social media site has spent heavily on product development and marketing in recent years, betting it could lose money as long as it attracted new users.
00:00:23
But that hasn't quite panned out, the company hitting 300 million active monthly users this year, less than a fifth of Facebook's numbers. So cutting the fat at Twitter is looking inevitable, says Reuters correspondent Liana Baker>> It's spending a lot on keeping it's employees with stock compensation. I'm hearing that it could look to reform its stock compensation going forward when it hires new employees.
00:00:47
It's never done widespread layoffs before, it's laid off about 6% of employees a year ago when Jack Dorsey started. So, something like that could be something they would think about.>> As it is, Twitter hasn't been able to attract buyers with Salesforce, Walt Disney and Google all walking away.
00:01:04
So it needs to shape up.>> Activists have been circling Twitter for a while. No one so far has taken the plunge, but if Twitter doesn't make these necessary changes, an outsider could force it too.>> One analyst estimates Twitter could save about $100 million a year by cutting 10% of its workforce.
00:01:22
And sales and marketing, an area Twitter spends more than twice as much as its rivals to earn each dollar of revenue, could be one of the first departments to end up on the chopping block.