© Reuters. Twilio (TWLO) to cut around 17% of workforce as it aims to streamline business
By Sam Boughedda
Twilio (NYSE:) said Monday that it will cut approximately 17% of its workforce as it aims to cut costs and become more efficient.
The customer engagement platform company’s Chief Executive, Jeff Lawson, said in an email to employees that the environment has changed, and so must the company. He also states that Twilio has to “prioritize profit far more than before.”
It marks the second round of layoffs after the company announced it would lay off 11% of its workforce — between 800 and 900 people — in September.
“We’re exiting the last phase with a great market position, and very strong cash reserves, but unfortunately that’s not enough to get us through the next phase,” said Lawson. “We have to spend less, streamline, and become more efficient.”
As a result, the company is forming two business units, Twilio Communications, and Twilio Data & Applications, resulting in job cuts.
Lawson added that as the firm has refined its strategy over the past several months, it became apparent it needed significant structural changes.
“When we look at these two business units on their own, it’s clear that we’ve gotten too big, especially in Communications. And that’s why we’re also letting go of some colleagues today,” Lawson told employees.
The company’s Twilio Data & Applications division will be led by Elena Donio, with Twilio Communications led by Khozema Shipchandler.
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