Why Twitter Is Laying Off 8 Percent of Its Employees

PHOTO: Twitter co-Founder Jack Dorsey speaks at a fundraiser in New York, April 24, 2013. Mary Altaffer/AP Photo
Twitter co-Founder Jack Dorsey speaks at a fundraiser in New York, April 24, 2013.

Twitter CEO Jack Dorsey made his first tough call since returning to top job, announcing today the service would be laying off 336 people -- approximately 8 percent of its work force -- in order to put the company on a "stronger path to grow."

Dorsey confirmed the cuts this morning, sharing on Twitter a link to an internal memo he sent to employees detailing the changes.

Many of the cuts will impact Twitter's engineering team, which Dorsey said he believes will "move much faster with a smaller and nimbler team." Engineers will still remain the greatest percentage of Twitter's workforce and Dorsey said other teams would be scaled accordingly.

"The team has been working around the clock to produce streamlined roadmap for Twitter, Vine, and Periscope and they are shaping up to be strong. The roadmap is focused on the experiences which will have the greatest impact," he said. "The roadmap is also a plan to change how we work, and what we need to do that work."

Dorsey said Twitter would provide "generous exit packages and help finding a new job" for people whose jobs were impacted by the decision.

"Thank you all for your trust and understanding here. This isn't easy. But it is right," he wrote. "The world needs a strong Twitter, and this is another step to get there."

Dorsey, 38, the former CEO of Twitter and one of the founders of the site, took over once again as chief executive earlier this month at a pivotal time for Twitter as the company faces pressure from investors to show the company has a strategy for growth. Shares of Twitter surged 5.71 percent this morning following the announcement.