Twilio Inc. Announces Workforce Layoffs
The chief executive of software provider Twilio, Jeff Lawson, has announced that the company will be laying off approximately 5% of its workforce due to underachievement in the growth of a targeted unit. This news has caused a 0.5% decrease in share price. However, Twilio has confirmed that it expects restructuring charges between $25 to $35 million and has reaffirmed its guidance for the upcoming fourth quarter and full year. The layoffs will affect around 300 employees, according to Twilio’s recent regulatory filings.
CEO Jeff Lawson explained that the cuts are part of a broader plan to streamline Twilio’s offerings. The cuts will impact Twilio’s Data and Applications unit, which has been targeted activist investors at Legion Partners and Anson Funds. Twilio has undergone three rounds of layoffs within just over a year, with the company cutting 17% of its workforce in February. Twilio is also sunsetting its Programmable Video product as part of the plan, and it will restructure how it sells its Flex digital engagement product.
Activist investors have been pushing Twilio to sell the Data & Applications unit, if not the entire company, and are reportedly also calling for management changes at the company. However, Twilio remains committed to providing software that helps businesses contact and analyze their customers. Founded in 2008, the company’s share price is up about 36% year-to-date, despite being well off 2021 highs.