Twilio has a significant reorganisation plan that includes 11% of its workers being laid off.
As of December 31, 2021, Twilio employed 7,867 people.
The restructure intends to increase operating margins, increase selling capacity, and lower operational costs. The cloud communications software developer has been working toward profitability in 2023.
Twilio CEO Jeff Lawson explained in a letter to colleagues that the firm made the decision to reduce headcount in order to operate more effectively and match investments with goals. Though "very painful," the choice was nonetheless "sensible and important," according to him.
"Over the past couple of years, Twilio has expanded at an astounding rate. It was too quick and without sufficient focus on our top business targets, Lawson wrote in the letter. "I accept responsibility for those choices, as well as for the challenging choice to carry out this layoff."
According to Lawson, the affected employees work in departments where the business can run more effectively and where consumers "succeed without as much human engagement."
Twilio stated that it anticipates expenses associated with the reorganisation plan to range from $70 million to $90 million.
On Wednesday, Twilio stock increased 10% as a whole.