On Monday, the American cloud communications firm Twilio revealed that it would eliminate 1,500 employees or about 17% of its workforce.
In a company filing with the Securities and Exchange Commission on Monday, Twilio disclosed plans to reduce around 17% of its employment, or roughly 1,500 jobs, based on the 8,992 employees recorded as of September 30, 2022. Twilio published a blog post about the layoffs on its website.
The statement followed the company’s September restructuring plan, which included approximately 11% of its staff being let go. In an SEC filing, Twilio stated that as of September 2022, it has 8,992 workers.
The additional layoffs were necessary to reorganize Twilio for it to prosper, CEO Jeff Lawson wrote in a Monday email to staff. He wrote, “These changes hurt. The upcoming weeks will be spent adjusting to our new organization and processing this change.
On Monday, Twilio stock increased by 2%.
According to Lawson, Twilio is creating two business units to save costs and boost productivity. Elena Donio will be in charge of Twilio Data & Applications, while Khozema Ship chandler will oversee Twilio Communications. When executives examined these two business units, it was evident, according to Lawson, that the company had grown “too huge,” particularly in communications.
According to Lawson, who claimed this was obvious, Twilio needed to make “major structural adjustments” to carry out its objectives properly.
“It is painful to part ways with so many talented people – but it’s necessary to get our two businesses into the right shape to succeed,” he said.
Many tech companies, including Twilio, have recently announced layoffs. Dell, Zoom, and eBay all revealed that they had made large staff reductions last week. In January, Google announced intentions to fire more than 12,000 staff, Microsoft said it would lay off 10,000 people, and Salesforce indicated it would fire 7,000 employees.
