It hasn't been a good week for the big guys…Social media has hit the headlines this week, but perhaps not for the right reasons.
Facebook came under fire as it emerged that last year they only paid £4,327 in corporation tax to the UK government. To put this in perspective, the average UK worker pays £5,393 per year, yet despite profits of almost $3 billion, Facebook’s tax bill was lower.
Facebook defended this by stating that they have complied with all UK rulings, adding that all of their employees paid income tax. Legal maybe but morally sound? Seems like a pitifully small contribution.
Twitter has announced that 8% of its entire workforce has been asked to leave the company, equating to 336 employees. The return of Jack Dorsey as CEO has seen a move to restructure just one week in. Dorsey said in a company-wide email:
"The team has been working around the clock to produce streamlined roadmap for Twitter, Vine, and Periscope and they are shaping up to be strong. The roadmap is focused on the experiences which will have the greatest impact […]
The roadmap is also a plan to change how we work, and what we need to do that work. Product and Engineering are going to make the most significant structural changes to reflect our plan ahead.”
While the loss of employees appears to be a blow to Twitter, it does seem that a clear plan is in place going forward, especially with the introduction of “Moments”, Twitter’s new news service.