For weeks speculation has abounded about who might buy Twitter. Microsoft, Facebook, and Google were all thought to be potential purchasers but those dreams have fizzled and Twitter is making major adjustments. The company has announced that it will close Vine—its once popular short video app—and lay off 9% of its workforce.
Despite beating Wall Street’s expectations, Twitter confirmed that it will employ lay offs—especially in the areas of sales, marketing, and partnerships--and explained in a blog post that it will start shutting down Vine over the next few months. The post assured users that they won’t be blindsided, and will have time to download their videos. Twitter also says it will maintain the Vine website so that existing videos can still be viewed.
According to TechCrunch this all comes on the heels of better than expected revenue. Analysts forecasted 9 cents per share, but Twitter reported earnings of 13 cents per share and $616 million in revenue. Twitter also added about four millions monthly active users, but none of this seems enough to convince Wall Street that Twitter isn’t beleaguered.