The Twilio Company will be laying off 11% of their workforce, or about 200 employees. This decision comes after the company’s revenues suffered massive losses over the last few months, which the company has not yet been able to recover from. These layoffs are expected to begin in January 2018 and conclude by March 2018, so the company can be back to profitability by April 2018. The CEO stated that this move would allow them to scale back some of their more unpopular projects and put more focus on improving their existing products.
Twilio said on Wednesday that as part of a big reorganisation plan, 11% of its workforce would be laid off.
Twilio said on Wednesday that as part of a big reorganisation plan, 11% of its workforce would be laid off.
By the end of 2021, Twilio employed 7,867 people.
In order to become profitable in 2023, the provider of cloud communications software is reorganising in order to increase operational margins, boost sales, and reduce operating expenses.
In a message to coworkers, Twilio CEO Jeff Lawson stated that the company decided to cut personnel in order to run more efficiently and align investments with goals. The decision was “logical and vital,” he said, while being “extremely difficult.”
Twilio’s growth over the past two years has been phenomenal. Lawson said in the letter that it was too rapid and didn’t place enough emphasis on our primary business goals. I acknowledge that I made those decisions as well as the difficult decision to implement this layoff.
The impacted personnel, in Lawson’s words, are employed in divisions where the company can operate more successfully and where customers “succeed without as much human contact.”
According to Twilio, costs related to the reorganisation plan are expected to be in the region of $70 million and $90 million.
The whole price of Twilio shares rose by 10% on Wednesday.
