This reminds me of the story of a walk from SF to LA illustrating why software estimates are always so wrong:
http://www.quora.com/Engineering-Management/Why-are-software...
Instead shouldn't we just evaluate the content on its own merits?
You may say: but they have mobile apps? But so do a lot of other companies that don't have 1000 engineers. You need a few really great mobile devs to build great mobile apps, again based on my experience.
I think what has happened for them is that their structure isn't that good and they have scaled too fast (and in this process they have hired a lot of B and C people that aren't that good). It's a least my conclusion based on the limited information I know about them.
There are a few projects that would be well known (Storm, Kestrel, Bootstrap, FlockDB). Although I'm 100% if they were created at Twitter or just hired in.
(I suspect the write load is rather different - the figures I can find for Plurk suggest 8 billion messages in total - Twitter writes half a billion a day.)
As others have pointed out, a lot of projects have been built from 'scratch' due to Twitter's needs and/or culture. This alone has a heavy carrying cost, as they now have the burden of having at least two maintainers for mission critical applications and services. It doesn't mean the engineer-tuples are bijective onto the various projects, but there are only so many tickets a person can resolve.
At Amazon, we grew to what we then thought was an insane size in IT (and across the company – we had horrid little offices all over the place in Seattle). This was boosted by a number of acquisitions, such as drugstore.com and homegrocer.com. In 2000, we had a small round of layoffs, then they had another round in 2001.
I would expect something similar at Twitter if they don't move horizontally. I would say that, given the competitive HR landscape, it's quite possible they intentionally overhired to secure strong engineers and will rank and yank those who have not turned out to be performers.
They're still in an annealing phase, but, honestly, I'm unqualified to speculate on their internal alignment, growth plans, or any RIFs they have planned in the near future.