Twitter co-founder Dorsey apologizes for growing the company ‘too quickly’ in wake of mass layoffs

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  • Twitter co-founder Jack Dorsey on Saturday apologized for growing the company “too quickly”, a day after hundreds of employees were laid off under new boss Elon Musk.
  • Twitter informed employees on Thursday evening that it would begin laying off staff members, according to communications obtained by CNBC.

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Twitter Co-founder Jack Dorsey apologized Saturday for letting the company grow “too fast” a day after the company laid off nearly half of its workforce under new owner Elon Musk.

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“People on Twitter, past and present, are strong and resilient. They will always find a way, no matter how difficult the moment,” Dorsey wrote in tweet, “I realize that many people are angry with me. Why everyone is in this position is my responsibility: I grew the company too quickly. I’m sorry for that.”

According to documents filed with the US Securities and Exchange Commission, as of June 30, 2013, shortly before the social media company went public, Twitter had approximately 2,000 employees. As of the end of last year, the company reported more than 7,500 full-time employees.

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After Tesla and SpaceX CEO Musk took ownership of Twitter on October 28, the company began a massive reduction in its workforce. Twitter informed employees on Thursday evening that it would begin laying off staff members, according to communications obtained by CNBC.

According to three letters of notice sent by the company to regional officials obtained by CNBC, the cuts affected a total of 983 employees in their home state of California.

Musk wrote in a tweet Friday afternoon, “With regards to Twitter’s reduction in force, unfortunately there is no alternative when the company is losing more than $4M/day. Everyone who opted out was offered a 3-month severance which is 50% more than what is legally required.”

Twitter’s reduction in force extended beyond California, and CNBC could not immediately confirm whether Musk’s description is accurate. A loss of $4 million per day in the company would represent an annual loss of approximately $1.5 billion.

Dorsey co-founded Twitter in 2006 with Noah Glass, Biz Stone, and Evan Williams. Dorsey took the top position twice during the leadership change and stepped down as CEO last year. The company’s then chief technology officer Parag Agarwal replaced Dorsey as CEO, before leaving as part of Musk’s acquisition.

Dorsey has since shifted his focus entirely to managing his payments company Block, formerly known as Square. He has been a vocal advocate of the acquisition of Musk, writing in a tweet that “this is the right path… I believe it with all my heart.”

—CNBC’s Lora Kolodny and Jonathan Vanian



Credit: www.cnbc.com /

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