"Sell the rumor, buy the news" appears to be the meme for now as TWTR delivers on the chatter:
- *TWITTER'S DORSEY: 'MADE SOME TOUGH BUT NECESSARY DECISIONS'
- *TWITTER CUTTING UP TO 8% OF JOBS, UP TO 336 JOBS
- *TWTR SEES 3Q ADJ EBITDA AT/ABOVE TOP END $110-$115M, EST $116.7M
So drastic job cuts, lowered revenue and EBITDA guidance, and "necessary" decisions - TWTR up 5% in the pre-market.
From TWTR's 8-K
On October 13, 2015, in connection with the announcement of a restructuring described further below, Twitter, Inc. (the “Company”) announced that it expects revenue and adjusted EBITDA for the third quarter of 2015 to be at or above the high end of the previously forecasted ranges of $545 million to $560 million and $110 million to $115 million, respectively. The foregoing information is preliminary and subject to completion of the Company’s quarter-end financial reporting processes and review. More information about the Company’s financial performance in the third quarter of 2015 will be provided when the Company reports final results on October 27, 2015, after market close.
On October 12, 2015, the Board of Directors of the Company approved a restructuring and reduction in force plan of up to 336 employees, constituting approximately 8% of the Company’s global workforce. The restructuring is part of an overall plan to organize around the Company’s top product priorities and drive efficiencies throughout the Company. The Company intends to reinvest savings in its most important priorities to drive growth.
The Company estimates it will incur approximately $10 million to $20 million of cash expenditures, substantially all of which will be severance costs. Total restructuring expenses are estimated at $5M to $15M, which is lower than cash restructuring costs due to a credit related to non-cash stock-based compensation expense reversals for unvested stock awards. The Company expects to recognize most of these pre-tax restructuring charges in the quarter ended December 31, 2015.
CEO Jack Dorsey's letter to employees...
And "buy the news"
Meanwhile, here is an artist's impression of Jack Dorsey finally revisiting the TWTR R&D lab after years of absense: