Twitter, Inc. (TWTR) is planning to announce layoffs across most of its departments next week, according to a Re/code report late Friday that references sources familiar with the company.
The precise number or percentage of staff affected is unclear, but the cuts will presumably affect the well-compensated engineering staff particularly hard. Twitter has more than 4,100 employees around the world, half of which are engineers.
Speculation about the move comes just days after Jack Dorsey was named permanent CEO of Twitter, following a lengthy search. While the cuts will most likely cause a collapse in company morale, it should appease the Street who has criticized the social media company in the past for handing out excessive stock bonuses to staff while struggling with user growth and profitability.
Twitter declined 3.31% to $29.83 in extended trading Friday. Shares of the San Francisco-based firm are down 44.20% year-over-year and 14% year-to-date.