Twilio announces another round of layoffs impacting about 5% of its workforce
Published: 10:52 04 Dec 2023 EST
Twilio Inc (NYSE:TWLO) plans to slash about 295 jobs or 5% of its employees by the first quarter of 2024 after earlier this year cutting 17% of its workforce and closing several offices.
The San Francisco-based customer engagement platform provider said it expects to incur about $25 million to $35 million in charges associated with the staff cuts during the fourth quarter.
Twilio CEO Jeff Lawson wrote in a letter attached to a regulatory filing that the cuts would be focused on its Segment and Flex go-to-market (GTM) teams and in turn, would impact some supporting functions in marketing and finance.
“The decision to eliminate these roles was a hard one, but we’re confident it’s in the best interest of our customers and the long-term health of our business,” Lawson wrote.
The company is also shuttering Twilio Programmable Video as a standalone product given its “niche area” to focus on its Messaging, Voice, and Email offerings, the CEO wrote.
Per Lawson’s letter, Twilio employees would be notified on Tuesday if their role has been impacted by the changes.
“While I know it’s hard to undergo so much change, it’s all part of the necessary transition to profitable growth,” Lawson wrote. “Despite, and because of, these changes – I believe we are increasingly set up to balance the needs of profit and growth, and enabled to execute on the CustomerAI opportunity ahead of us.”
The company also reaffirmed its financial guidance for the fourth quarter and full year ending on December 31, 2023.
Twilio shares traded 1.2% lower at about US$66 in early trade on Monday.
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