Twitter to shut down Vine, reduce staff globally
In a few months’ times, social media network, Twitter, would close its video sharing app, Vine. Vine allows users to upload six-second videos.
Twitter said in a blog post: “Nothing is happening to the apps, website or your Vines today. We value you, your Vines, and are going to do this the right way. You’ll be able to access and download your Vines. We’ll be keeping the website online because we think it’s important to still be able to watch all the incredible Vines that have been made. You will be notified before we make any changes to the app or website.”
Meanwhile, the company has confirmed that it plans to lay off nine percent of its global workforce which it expects to cost as much as $30m in redundancy compensation and other costs.
The restructuring, which Twitter hopes to complete by end of 2016, will focus on re-organising the company’s sales and marketing business as the company tries to improve its profitability next year.
This reduction in headcount is coming despite the company recording an eight percent rise in revenue for the third quarter of the year.
The social media platform posted quarterly revenue of $616m (£503m) for the three months ending September 30.
The company’s ad revenue grew by six percent year on year to $545m, of which 90 percent is mobile ad revenue. The majority of its revenue still comes from the US, which increased in Q3 by one percent to $347m year on year, while international revenue surged by 21 percent to $242m.
Twitter’s chief executive, Jack Dorsey said: “We see a significant opportunity to increase growth as we continue to improve the core service. We have a clear plan, and we’re making the necessary changes to ensure Twitter is positioned for long-term growth. The key drivers of future revenue growth are trending positive, and we remain confident in Twitter’s future.”
Twitter’s average monthly active users increased by three percent year on year to 317 million, while average daily usage grew by seven percent compared to the same time last year.
“Our strategy is directly driving growth in audience and engagement, with an acceleration in year-over-year growth for daily active usage, Tweet impressions, and time spent for the second consecutive quarter,” Dorsey said.
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