Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Twilio to cut around 17% of workforce as it aims to streamline business

Published 02/13/2023, 11:10 PM
Updated 02/13/2023, 11:10 PM
© Reuters.

© Reuters.

By Sam Boughedda

Twilio (NYSE:TWLO) said Monday that it will cut approximately 17% of its workforce as it aims to cut costs and become more efficient.

The customer engagement platform company's Chief Executive, Jeff Lawson, said in an email to employees that the environment has changed, and so must the company. He also states that Twilio has to "prioritize profit far more than before."

It marks the second round of layoffs after the company announced it would lay off 11% of its workforce — between 800 and 900 people — in September.

"We're exiting the last phase with a great market position, and very strong cash reserves, but unfortunately that's not enough to get us through the next phase," said Lawson. "We have to spend less, streamline, and become more efficient."

As a result, the company is forming two business units, Twilio Communications, and Twilio Data & Applications, resulting in job cuts.

Lawson added that as the firm has refined its strategy over the past several months, it became apparent it needed significant structural changes.

"When we look at these two business units on their own, it's clear that we've gotten too big, especially in Communications. And that's why we're also letting go of some colleagues today," Lawson told employees.

The company's Twilio Data & Applications division will be led by Elena Donio, with Twilio Communications led by Khozema Shipchandler.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.