Earlier this month, Twitter hired bankers to explore selling opportunities. Companies like Salesforce.com, Walt Disney and Alphabet’s Google looked at Twitter but ultimately decided not to buy it.
According to SunTrust analyst Robert Peck, if Twitter cut 10 % of its workforce it could save about $100 million a year. But the layoffs could hurt the company’s image in San Francisco, where there is a huge competition for engineering talent.
The company may consider of cutting sales and marketing for starters as these are the areas where it is spending more than twice than its rivals.
In the first six months of this year, Twitter’s sales and marketing spending was about 40 % of its revenue. On the other hand Yahoo is spending 19% and Facebook is spending around 15% in the said area.###