Dive Brief:

• Twitter is scarling back, with news reports that the company will be reducing head count and halting expansion of its HQ location.
• According to the New York Times, CEO Jack Dorsey is behind the cost-cutting measures, as Twitter struggles to overcome dropping stock prices and a lack of new users.
• The Times reported that many see Twitter as an organization that expanded too fast, with more than 4,100 employees in 35 offices in just the past few years. The layoffs could happen by Tuesday.

Dive Insight

Dorsey, who co-founded Twitter, became permanent CEO last Monday. He had been the interim CEO since July 1, and has had time to assess the company’s prospects, strengths and weaknesses, the Times reported.

“Twitter is clearly going through a transition. A new CEO., new products, and this restructuring is another avenue they will need to go down,” Brian Blau, a technology analyst at Gartner, told the Times. “Reducing costs by reductions is always tough, but a better focus on execution and innovation will help them in the long run.”

For his part, Dorsey tweeted this last Monday: “We're working hard at Twitter to focus our roadmap on a few things we can make really great. And we're strengthening our team along the way.”