The company will also reduce some office space and pare back employee benefits as part of a focus on profitability, Twilio Chief Executive Jeff Lawson wrote in a blog post.
New Delhi: Twilio Inc, a Cloud communications company has announced its second wave of layoffs and said that it will cut about 17% roles. The company will also reduce some office space and pare back employee benefits as part of a focus on profitability, Chief Executive Jeff Lawson wrote in a blog post Monday.
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Technology firms have laid off thousands of workers recently as they brace for a period of lower demand, high interest rates and macro economic instability. And with these cuts, Twilio has become one of the first tech companies to announce a second major staffing reduction in the current economic downturn. The move, which is the second instance of job cuts in five months, sent the company’s share up 2%.
Twilio had just under 9,000 employees as of September-end. It is not clear whether the figure includes the impact of retrenchment announced on Sept. 14. In September, the software firm said it would cut 11% of workers after growing too fast. Together, the cuts amount to about 2,350 workers. Once completed, Twilio’s headcount will be about 6,642 employees, about the same as mid-2021 staffing levels.
Twilio will also reorganize the company into two units, Twilio Communications and Twilio Data and Applications.
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“This is because the two parts of our business – communications and software – are at different lifecycle stages and have different operating needs,” Chief Executive Officer and co-founder Jeff Lawson said in a blog post.
Both the units will include sales, research and development, and operational resources. Twilio’s revenue had boomed at the peak of the pandemic but the growth rate has since inched lower.
The stock, which fell over 81% last year, has, however, gained a quarter of its value this year as technology stocks staged a revival after cost-cuts across the board.
