As the customer engagement platform looks to rein in costs during the economic downturn, it will lay off up to 9% of its workforce. In a message to staff, the CEO blamed the layoffs partially on the company's rapid growth and lack of focus.
I take responsibility for those decisions and the difficult decision to do this layoff, as well as the letter written by me that was sent internally and published to Twilio's website. Twilio has always been growing. We are committed to being profitable. Being profitable will make us stronger.
Areas of go-to-market, R&D, and Twilio's general and administrative departments will be affected by the cuts. At least 12 weeks of pay and one week for every year of service at Twilio will be given to employees who were notified this morning.
The talent acquisition team at Twilio will create a list of laid off employees that will be shared with other companies and investors who know many such companies.
The paperwork shows that the cost of the headcount reduction will be between $70 million and $90 million, with most of the costs being incurred during the third and fourth fiscal quarters.
Today's layoffs are about aligning our investments more firmly with our priorities as well as running our company more efficiently overall. It will be a difficult few months as we change the shape of our company.
According to CNBC, San Francisco-based Twilio has been trying to make money. As the world returned to in-person work, sales of the company's cloud services plummeted.
The company reported a loss of $328 million on revenue of $943.4 million in the most recent quarter. The stock has fallen about 73% this year, and shares were up about 1% on the layoffs.
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