Twilio Lays Off 5% Workforce
Twilio, a cloud communications company, announced its third major round of layoffs on 4 December, resulting in a 5 per cent reduction in its workforce.
According to Bloomberg, Chief Executive Officer Jeff Lawson stated in a memo to employees on Monday, "While I know it's difficult to go through so much change, it's all part of the necessary transition to profitable growth."
According to Lawson, the layoffs will primarily affect salespeople for Twilio's consumer data platform and contact centre software. He also stated that previous restructures "underachieved" in their goal of assisting these business units in achieving higher growth rates.
Twilio has laid off over 3,000 employees since September 2022, accounting for nearly one-third of its total workforce in 2022. Twilio's stock dropped 1.1 per cent at 10:39 a.m. in New York as a result of this news.
Twilio also revealed that the company could face charges ranging from $25 million to $35 million as a result of the layoffs, according to the filing. The most recent round of restructuring is expected to be completed by the end of the year.
