Twitter ditches new office plans after growth slows

It would have been pretty convenient if Jack Dorsey didn’t even have to change buildings to lead both Twitter and Square at once.

However, in a last-minute manoeuvre, Twitter pulled out of plans to expand its headquarters into the neighbouring San Francisco building as its growth has stalled, reports the San Francisco Business Times’ Cory Weinberg.

The company had reportedly nearly finalised a deal to move into neighbouring, 1455 Market St., which houses both Uber and Dorsey’s other company Square.

While other tech companies are expanding like crazy — Uber is moving to Oakland while Apple just signed on for a second ‘Spaceship’ campus — Twitter’s reluctance to expand its office footprint mirrors its stalled user growth and turmoil within the company. The social network site has seen a parade of executives leaving the company, and its user growth has ground to a halt.

The move by Twitter may actually be a smart one. Venture capitalists have been criticising startups for spending too much money on expensive rents in San Francisco when they really need to be focused on building products in an affordable fashion. With Twitter as a public company, it has its shareholders to respond to and over-priced expansion and low user numbers won’t win their confidence.

NOW WATCH: The full story of Twitter CEO Jack Dorsey is much more awesome than you realise

NOW WATCH: Tech Insider videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at