Twitter's new CEO Jack Dorsey 'preparing to cut jobs' at social media giant

Twitter's newly appointed chief executive Jack Dorsey is already stamping his authority on the social media firm.

Twitter co-founder Dorsey, who was last week named as its permanent boss, is preparing to unveil redundancies and will put a stop to an expansion at its San Francisco headquarters as part of a series of cost-cutting initiatives, according to reports.

Dorsey rejoins the company - he first ran it between 2007 and 2008 before being ousted - amid a slowdown in user growth, which has rattled investors.

The shares event at one stage dipped below $26 - the price at which they first listed on the New York Stock Exchange in 2013.

Meanwhile spending has been rising, with costs and expenses up by over a third to $633 million in the last quarter.

Shares were been back on the front foot immediately after Dorsey's reappointment, as investors took it as a sign of stability at the company.

The 38-year-old has also already moved to adress some of the problems attributed to his predecessor Dick Costolo.

Last week he launched Moments - a way of drawing to new users and tempting back those who abandoned it by making timelines more simple and following a narrative.

He has also been promoting the microblogging site's video advertising capabilities.

Twitter said Dorsey is receiving no "direct compensation" in his new role, which he will carry out while remaining chief of mobile payments firm, Square.