The company's net loss narrowed to $102.9 million, or 15 cents per share, in the third quarter ended September 30, from $131.7 million, or 20 cents per share, a year earlier.
On Thursday, the microblogging platform released its Q3 2016 earnings report, displaying revenue of $616 million, an increase of eight percent year-on-year. Monthly active users hit 317 million for the third quarter, compared with about 313 million in the previous quarter.
The company said it is restructuring and reorganizing sales to become profitable in 2017.
Twitter was widely reported to be in talks to find a buyer, and has held meetings with Google parent Alphabet and cloud computing giant Salesforce. Several other firms, including Salesforce.com Inc. and Walt Disney Co., have considered and then rejected the opportunity to acquire Twitter in recent weeks... Hours after the earnings announcement Thursday, Twitter said it would shut down its Vine video app "in the coming months".
Twitter said the layoffs would allow it to continue funding key business lines while improving efficiency. Service improvements are attracting advertisers, and "we believe revenue growth will follow", Dorsey said.
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The company said it estimated that there would be costs of between US$10 million and US$20 million associated with the staff cuts.
There have been tons of headlines this year about the massive exodus of Twitter's top leadership. Its stock was up 1.6 per cent to US$17.56 (RM73.70), after rallying five per cent in premarket trading.
Chief executive Jack Dorsey is trying to turn Twitter around, dragging the company into profitability.
Twitter also enjoyed a 7% rise in its number of daily active users, thanks to its live-streaming deal with the National Football League to rights to Thursday Night Football. It has also drawn large audiences for events such as the United States presidential debates and NFL football games. However, Twitter kept mum on the names of the said companies.
Analysts however remain skeptical about Twitter's outlook for expansion, expressing concerns about its ability to entice users beyond its core base. Other politicians and celebrities use it, as well, and have millions of followers. They declined to give a revenue forecast for the fourth quarter or full year due to the cuts made in the sales department, the Associated Press reports. The company is also seeing more engagement from its existing users.