As the customer engagement platform looks to control costs amid a broader economic downturn, Twilio has announced it will lay off 800 to 900 people, 11 percent of its more than 7,800 workforce. In a message to employees, CEO Jeff Lawson called the layoffs "sensible and necessary," due in part to Twilio's rapid growth over the past several years and a "[reckless] lack of focus" on key priorities.
"I take responsibility for those decisions as well as the difficult decision to fire," Lawson said in a letter sent internally and published on the Twilio blog. "Twilio has always been a growth company. And as you know, we are committed to being a profitable growth company. At our level, being profitable makes us stronger... We eventually found that some investments just didn't make sense." and identified areas where we can be more efficient."
According to Lawson, the cuts mostly affect the "go-to-market areas" R&D and Twilio's general and administrative divisions. Affected employees -- who were notified this morning -- will receive at least 12 weeks' pay and one week per year of Twilio service, in addition to Twilio's continuing stock vesting value.
Lawson said Twilio's talent acquisition team creates an opt-in list for laid-off employees and shares it with hiring companies and "investors who know a lot about these companies."
According to filings with the U.S. Securities and Exchange Commission, the headcount reductions will cost the company $70 million to $90 million, according to Twilio's estimates, in the third and fourth fiscal quarters of 2022.
Lawson continued, "Today's challenges are aligning our investments with our prior priorities and effectively managing our company."
Twilio is laying off 11% of its workforce, looking at up to $90 million in pay
Software developer Twilio is cutting 11 percent of its workforce to boost profits, the company said on Wednesday, becoming the latest tech company to announce layoffs. Twilio (ticker: TWLO) said in a filing with the Securities and Exchange Commission,
"The cuts are part of a broader restructuring plan designed to help the company reduce operating costs, improve operating margins and accelerate software sales." The sales force is designed to move."
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