Despite its popularity with people of color and others, Twitter is struggling to keep up with Facebook and Snapchat.
In yet another sign that it faces an uncertain future, Twitter may lay off several hundred people after its next earnings report set for Thursday.
The once high-flying social media platform is facing headwinds because other social media offerings, such as Facebook and Snapchat, are growing faster. In an effort to catch up Twitter has put itself up for sale but has found no takers. Salesforce.com, The Walt Disney Co. and Alphabet (parent company of Google) expressed interest but eventually backed out.
In the past 12 months, Twitter’s stock price has fallen by 40 percent. Poor performance of the stock has made it difficult for Twitter to compete for the best talent in Silicon Valley where engineers and others can earn hundreds of thousands of dollars in stock options at high-performing companies.
Twitter, which is extremely popular with people of color, is recognized as one of the best platforms for sharing content and rallying like-minded users behind causes. However, the company is not meeting its advertising sales goals and may eliminate about 300 people after the earnings report, about the same percentage it did last year when co-founder Jack Dorsey took over as chief executive officer.
Analysts maintain that Twitter must emphasize live video to generate more user growth. The company wants to be known for being the go-to place for web surfers looking for video on what’s happening in real time — a spot currently occupied by Facebook Live.