Twilio slashing 11% of workforce in restructuring
As of Dec. 31, 2021, Twilio had 7,867 employees, according to its latest annual report
FOX Business Flash top headlines for September 14
Check out what's clicking on FoxBusiness.com
Communications software provider Twilio said it will cut 11% of its workforce as part of a restructuring plan designed to reduce operating costs, improve operating margin and shift its selling capacity to accelerate software sales.
"Twilio has grown at an astonishing rate over the past couple years. It was too fast, and without enough focus on our most important company priorities," CEO Jeff Lawson said in a letter to employees. "I take responsibility for those decisions, as well as the difficult decision to do this layoff."
As of Dec. 31, 2021, Twilio had 7,867 employees, according to its latest annual report.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| TWLO | TWILIO INC. | 60.01 | -0.97 | -1.60% |
The cuts will primarily impact employees in areas of "Go To Market," where customers can succeed without as much human intervention, as well as in its research and development and general and administrative departments.
SMALL BUSINESSES FACING INFLATION HEADWINDS FIND NEW WAYS TO KEEP UP
All impacted Twilio employees will receive at least 12 weeks of pay, plus one week for every year of service, and the full value of the company's next stock vest.
They will also remain on the company payroll while searching for their next role and have the option of being added to a list that will be shared with other companies who are hiring and "investors who know many such companies."
In this photo illustration a Twilio logo of an US cloud communications platform is seen on a smartphone and a pc screen. (Photo Illustration by Pavlo Gonchar/SOPA Images/LightRocket via Getty Images) ((Photo Illustration by Pavlo Gonchar/SOPA Images/LightRocket via Getty Images) / Getty Images)
The company expects approximately to incur between $70 million and $90 million in charges associated with the restructuring, with the majority incurred in the third quarter of 2022. The restructuring is expected to be completed by the end of the fourth quarter of 2022.
CLICK HERE TO READ MORE ON FOX BUSINESS
The move comes as Twilio is aiming to reach profitability in 2023.
On Wednesday, the company reaffirmed its first quarter 2023 revenue guidance in the range of $965 million and $975 million and an operational loss in the range of $60 million to $70 million, or 37 cents to 43 cents per share.
Shares of Twilio are down approximately 70% year to date.