This is bad, if not entirely unexpected, news. What <i>is</i> out of the ordinary is the public markets&#x27; reaction: the stock is down 3% in after-hours trading.<p>Typically when a company announces layoffs its stock goes up. More mature companies have sometimes slashed headcount on the way to a better market situation. But when younger companies announce layoffs, the markets stop assuming they have lots of growth ahead and adjust expectations accordingly -- usually resulting in a significant drop in stock price.<p>Remember, back in July, Twitter announced earnings beating market estimates. This was at 4pm, its stock surged 4%. About half an hour later, CFO Anthony Noto said Twitter would not see &quot;sustained, meaningful&quot; user growth for a &quot;considerable period of time.&quot; TWTR promptly plunged 10%.<p><a href="http:&#x2F;&#x2F;www.cnbc.com&#x2F;2015&#x2F;07&#x2F;28&#x2F;twitter-earnings-7-cents-per-share-vs-expected-eps-of-4-cents.html" rel="nofollow">http:&#x2F;&#x2F;www.cnbc.com&#x2F;2015&#x2F;07&#x2F;28&#x2F;twitter-earnings-7-cents-per-...</a>