In the third significant round of job cuts, Twilio, a cloud communications company, has announced five per cent reduction in its workforce. The layoffs will majorly impact sales personnel associated with the company’s consumer data platform and contact centre software.
In an official memo sent to employees about the current changes on Monday, 4 December 2023, Jeff Lawson, CEO, Twilio, clarified that these changes are necessary for the company in achieving profitable growth, as reported by Bloomberg.
Lawson also noted that previous restructuring efforts did not meet their goal of facilitating higher growth rates for these business units.
Furthermore, the company disclosed that it could face charges ranging from $25 million to $35 million associated with the layoffs. The ongoing restructuring is expected to be completed by the end of the year.
Since September 2022, Twilio has laid off over 3,000 employees, amounting to nearly one-third of its total workforce for the year. In February of this year, the company let go of 17 per cent of its workforce as a part of a broader restructuring initiative aimed at prioritising profitability. In its initial restructuring round, the company had cut 11 per cent of its workforce in September.
Twilio is known for its software that facilitates business-to-customer communication. Despite facing challenges in maintaining previous high levels of revenue growth and investor interest, Twilio continues to innovate, and recently unveiled new artificial intelligence products for its marketing services.