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No offense to the people I know working at Twitter, but these cuts aren't deep enough to stem the losses. While Twitter revenue grew $664M, $1,403M to $2,218M
by nikcub 10y ago
No offense to the people I know working at Twitter, but these cuts aren't deep enough to stem the losses.
While Twitter revenue grew $664M, $1,403M to $2,218M over the past three years, it is going to be a lot flatter than that at the end of this year - and despite that growth they've consistently been losing about $500M p.a ($645M, $577M and $521M respectively)
3,800 people work there - and equivalent cuts last year can barely be noticed on the financials.
The good times are over - they've spent billions over the last few years and not done anything to save them from flat user growth. They really need a wholesale shakeup and doing it over time, like Yahoo did, will just make it worse.
edit: here's a more brutal analysis [0][1]:
> PS. Twitter staff - I am not exaggerating. Look at the young man on your left and the young woman on your right. Only one of you three will keep your job.
[0] part 1 - http://brontecapital.blogspot.com.au/2016/10/some-comment-on-twitter-buyout-rumours.html http://brontecapital.blogspot.com.au/2016/10/some-comment-on...
[1] part 2 - http://brontecapital.blogspot.com.au/2016/10/measuring-how-bad-twitter-is.html http://brontecapital.blogspot.com.au/2016/10/measuring-how-b...
- rattray 10y agoWoah, they only have 3800 employees and spend 2.7Bn/yr? That's 700k per employee. What's all that money for?
- nikcub 10y agoStock options. It starts at the top: https://pbs.twimg.com/media/Cuplqd1XEAEre6n.jpg:large https://pbs.twimg.com/media/Cuplqd1XEAEre6n.jpg:large Being paid $72M p.a to oversee ~$500M p.a in losses. Great job if you can get it.
- deleted 10y ago[deleted]
- nikcub 10y agomore info from their filing[0]: > During the twelve months ended December 31, 2015 and 2014, we recognized $682.1 million and $631.6 million of expense related to stock-based compensation, respectively. As of December 31, 2015, we had unrecognized stock-based compensation expense of approximately $1.25 billion related to outstanding equity awards [0] see page 47 https://investor.twitterinc.com/secfiling.cfm?filingID=1564590-16-13646&CIK=1418091 https://investor.twitterinc.com/secfiling.cfm?filingID=15645...
- bduerst 10y agoTo be fair, that guy was previously CFO for the NFL. I'm not saying it's the right decision but they probably had to pay him that much just to draw him away.
- joshdickson 10y agoMarketing, running the service and data centers, office space, research and development, capex, etc, etc. Running companies is expensive beyond just the salaries.
- deleted 10y ago[deleted]