Twitter is in danger. Will it survive?

One of the most popular social media, Twitter is in danger.  The social media company had never really earned a profit ever since it's inception.  This year, other technology company giants like Google, Salesforce and even Disney turned down an offer to buy the company.

Mass layoff on Twitter

A mass layoff maybe one of the many possible solutions that the company is taking into consideration.  According to a reliable source, it could cut about 10 percent of its employee in order to save around $100 million a year.

Twitter in fact does not need a very big employee base since it can run at a lean workforce.  The bulk of the hiring came as Twitter steps us Research and Development, marketing and advertising.  All of this was done in order to finally earn profits.

What are the next step for Twitter?

Twitter which spends the highest compared to other social media when it comes to advertising may move back to the drawing table.  It spends around $473 million, consisting of 40 percent of its revenue in sales and marketing.

Research and development also equates for a big chunk of the expenses.  It is the highest spender compared to Facebook and Yahoo.  Twitter spends 28 percent of its revenue for R&D or at $334 million while Facebook and Yahoo spends 24 percent and 23 percent respectively.

Bold moves are to be expected

Some venture capitalists are saying that possible investors may think of bold moves to make Twitter profitable.  Advertising popularity of the social media platform is not very high. If bold and decisive actions are not made the company may find itself into oblivion.



Being an internet star is not easy.  Former popular companies like Zynga Inc. and Groupon Inc. now trades at a fraction of their initial public offering price.  Certainly, Twitter had been with us for a longer period and it would be sad to see it go.

What do you think should Twitter do to make it more profitable and relevant?  Share your views in the comments below.

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