The FINANCIAL — Popular social media company Twitter Inc. said that its Board approved a plan to eliminate up to 336 employees, representing about 8% of the Company’s global workforce, according to Nasdaq.
The restructuring is part of an overall plan to organize around the Company’s top product priorities and drive efficiencies throughout the Company. The Company intends to reinvest savings in its most important priorities to drive growth.
The company estimates it will incur about $10 million to $20 million of cash expenditures, substantially all of which will be severance costs. Total restructuring expenses are estimated at $5 million to $15 million, which is lower than cash restructuring costs due to a credit related to non-cash stock-based compensation expense reversals for unvested stock awards.
The company expects to recognize most of these pre-tax restructuring charges in the quarter ended December 31, 2015.
In addition, Twitter said that it expects revenue and adjusted EBITDA for the third quarter of 2015 to be at or above the high end of the previously forecasted ranges of $545 million to $560 million and $110 million to $115 million, respectively. Analysts polled by Thomson Reuters expect the company to report revenues of $559.19 million for the third-quarter. Analysts’ estimates typically exclude special items.