Twitter in Financial Hot Water, Planning to Downsize Workforce; Can No Longer Keep Up with Facebook and Instagram?

After the massive Oct. 22 DDOS hack across the East Coast, a bigger storm seems to be brewing on Twitter's side of the fence.

There is an upcoming layoff of employees by the hundreds. They also scheduled the release of their third-quarter earnings report to the public this week on Thursday at 4pm PST.

This was reminiscent of the massive 300+ job layoffs that happened to Twitter when CEO Jack Dorsey was reinstated.

Almost half or 40% of the value of the stocks plummeted because of Twitter’s inability to keep up with other social media mammoths Facebook and Instagram. Buyout rumors from Google, Disney, and other companies have circulated weeks before this latest development.

Among many other things, the sales team of Twitter is predicted to be the most badly affected by this pending layoff. Even the relatively new social media platform Snapchat has gained more traction than Twitter business-wise as far as growth and expansion is concerned.

According to NBC, expert investor Bill Miller emphasizes that Twitter has special needs as a company and having a part-time CEO like Dorsey does not work well with these needs. "If a part-time CEO makes sense, then so does a part-time CFO, part-time chief technology officer. That just makes no sense whatsoever," Miller tells NBC's Scott Wapner during "Halftime Report" segment. He also proposed that Twitter charge its remaining users at least $1 a month to easily recover from its financial losses.

In addition, Miller also mentioned what made Twitter's competitors outshine the social media service. "Facebook and Google, in their core business, are attacking the global ad market. That's where most of their revenues are coming from," Miller reveals.

Since Dorsey's reinstatement as CEO, there has been little changes to Twitter itself. There was a minor change to the algorithm. The direction of the product development of Twitter's services can still swing Twitter in a different financial direction in the upcoming quarters.

Despite the financial mayhem and layoff predictions, Twitter's official social media account's latest posts seem to indicate that it's still hash-tagged business as usual. The official representative still declines to comment as of posting time.