Twitter plans to cut 8% of its workforce

Twitter said Tuesday it would jettison up to 336 people — roughly 8% of its workforce — as part of a restructuring CEO Jack Dorsey says will place the social media company “on a stronger path to grow.”

Dorsey confirmed the layoffs in a memo sent to employees and shared the news through his Twitter account.

Dorsey says the cutbacks are needed to speed innovation. Twitter is working “around the clock” on a streamlined road map for Twitter, its video app Vine and live broadcast service Periscope, Dorsey said.

“Product and engineering are going to make the most significant structural changes to reflect our plan ahead,” Dorsey said in his memo. “We feel strongly that engineering will move much fast- er with a smaller and nimbler team, while remaining the biggest percentage of our workforce. And the rest of the organization will be streamlined in parallel.”

Twitter also offered some good news for investors, saying it expects third-quarter revenue and adjusted earnings both to come in above the high end of its previously forecast ranges. It had forecast $545 million to $560 million in revenue and $110 million to $115 million in adjusted earnings.

Following the announcement, shares of Twitter surged but lost that momentum, up about 1% on heavy volume in trading Tuesday.

Reactions were mixed. S&P Capital IQ analyst Scott Kessler reiterated his “strong buy” recommendation and his 12-month price target of $44. But RBC Capital Markets analyst Mark Mahaney said, “Twitter should be focused on growth ... and not efficiency at this stage.”