Twitter Higher After Shit-Canning 8% of Worthless Workforce

They also reaffirmed guidance. If by guidance, they meant losing large sums of money on a continuous basis; they assured us of that too.

Twitter sees Q3 revenue and adjusted EBITDA at or above the high end of the previously forecasted ranges of $545-560 mln and $110 million to $115 million, respectively.
This compares to $559.46 mln Capital IQ revenue consensus estimate.
Co confirms that on October 12, 2015, the Board of Directors approved a restructuring and reduction in force plan of up to 336 employees, constituting approximately 8% of the company’s global workforce. This had been speculated about in the media.
TWTR estimates it will incur approximately $10 million to $20 million of cash expenditures, substantially all of which will be severance costs. Total restructuring expenses are estimated at $5M to $15M, which is lower than cash restructuring costs due to a credit related to non-cash stock-based compensation expense reversals for unvested stock awards.
Excerpt from letter to employees from CEO Jack Dorsey: “Product and Engineering are going to make the most significant structural changes to reflect our plan ahead. We feel strongly that Engineering will move much faster with a smaller and nimbler team, while remaining the biggest percentage of our workforce. And the rest of the organization will be streamlined in parallel.”

The stock is up 1.5% in pre-market trading in a really tough tape. I like the stock here and feel these moves were necessary. I am long.