Twitter co-founder Dorsey apologizes for growing company ‘too fast’ after massive layoffs

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Twitter CEO Jack Dorsey addresses students at a town hall of the Indian Institute of Technology (IIT) in New Delhi, India, November 12, 2018.

Anushree Fadnavis | Reuters

Twitter co-founder Jack Dorsey apologized on Saturday for growing the company “too fast”, a day after the company laid off about half of its employees under new owner Elon Musk.

“People on Twitter, past and present, are strong and resilient. They will always find a way, no matter how difficult the moment is,” Dorsey says. wrote in a tweet. “I realize that many are angry with me. I am personally responsible for why everyone is in this situation: I have grown the company too fast. My apologies for that.”

On June 30, 2013, shortly before the social media company went public, Twitter had about 2,000 employees, according to documents filed with the U.S. Securities and Exchange Commission. At the end of last year, the company reported more than 7,500 full-time employees.

After Musk, the CEO of Tesla and SpaceX, took ownership of Twitter on October 28, the company began a significant workforce reduction. Twitter informed employees Thursday evening that it would lay off staff, according to reports obtained by CNBC.

The cuts affected a total of 983 employees in the home state of California, according to three notification letters the company sent to regional authorities, obtained by CNBC.

Musk wrote in a tweet Friday afternoon: “As for the reduction in Twitter, unfortunately there is no choice when the company loses more than $4 million a day. Everyone who left was offered a 3-month layoff, which is 50% more than required by law. “

Twitter’s power cut extended beyond California, and CNBC was unable to immediately confirm whether Musk’s description is accurate. A loss of $4 million per day at the company would represent an annual loss of approximately $1.5 billion.

Dorsey co-founded Twitter in 2006 along with Noah Glass, Biz Stone and Evan Williams. Dorsey held two senior positions during leadership changes and stepped down as CEO last year. The company’s then chief technology officer, Parag Agrawal, succeeded Dorsey as CEO before leaving as part of the Musk acquisition.

Since then, Dorsey has shifted his focus to solely managing his payment company Block, formerly known as Square. He has been an outspoken supporter of Musk’s takeover, write in a tweet that “This is the right way…I believe it with all my heart.”

— Lora Kolodny and Jonathan Vanian of CNBC contributed to this report.





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