Twilio will lay off 11 percent of its personnel as part of a cost-cutting reorganization strategy.
Twilio offers cloud services that software developers use to include messaging and videoconferencing in their apps. The corporation has grown into new areas in recent years. Twilio paid $3.2 billion in 2020 to purchase Segment, the developer of a data analytics platform that allows organizations to deliver targeted advertisements to customers.
The organization recently fell on hard times. As made evident by a filing to the US Securities and Exchange Commission, Twilio plans to lay off 11 percent of its workforce as part of a cost-cutting reorganization strategy. The organization did not specify how many employees will be affected. By the end of 2021, the firm had 7,867 employees.
Twilio indicated that the layoffs would cost between $70 million and $90 million in charges. The majority of the costs are expected to be incurred in the current quarter. According to the filing, the reorganization plan will be “substantially complete” by the end of 2022.
In a message to staff, Twilio co-founder and CEO Jeff Lawson stated that the layoffs impact the company’s research and development as well as administrative and general business areas. Twilio has reduced its spending in areas where clients can thrive without much human engagement, according to the CEO.
In his message to Twilio staff, Lawson stated that Twilio has always been a growing company. He went on to talk about the company’s commitment to being a profitable firm. Profitability, Lawson asserted, will strengthen the company at its current scale. Because of that, he believes that the way forward necessitates a more careful examination of which activities and spending are effective.
According to Lawson, Twilio has identified four primary goals as part of its attempts to become profitable. The firm is trying to improve platform stability and trust, boost messaging product profitability, and expedite the uptake of the Twilio Segment data analytics platform.