Twilio Announces Restructuring and 17% Workforce Reduction
Twilio, the US cloud communications company, has announced another major round of layoffs just five months after the last. The company will be cutting about 17% of its workforce, which amounts to roughly 1,400 employees. This comes just two days before the company reports its fourth quarter earnings.
Twilio is restructuring its business, forming two business units: Twilio Communications and Twilio Data & Applications. The split is necessary because the two units are at different lifecycle stages and have different needs. According to CEO Jeff Lawson, the Communications business needs to become more efficient, while the software business needs to accelerate its growth.
The company will also be closing some offices over the next few months and cutting back on employee benefits, including book and wellness allowances and its Twilio Recharge four-week paid sabbatical. Moreover, Lawson himself has taken a significant pay cut, reducing his base salary from $134,000 to $65,535.
Speaking on the restructuring, Lawson said, “The weeks ahead will be about processing all this change and working together to acclimate to our new structure. While tremendously difficult, I believe these actions will put us on the right path for executing our strategy and creating an even stronger, more efficient, and more effective Twilio.”
Twilio is not the only tech company to have experienced job losses. According to Layoffs.fyi, 340 tech companies have let go of more than 100,000 people since the start of 2023. By the end of 2022, nearly 160,000 jobs had been lost across more than 1,000 tech companies.
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