According to a filing with the SEC made on Wednesday, Twilio plans to restructure its staff significantly by terminating 11% of its employees.
As of December 31, 2021, Twilio employed 7,867 people.
The restructuring aims to increase operating margins, increase selling capacity, and lower operating costs. The cloud communications software developer has been working toward profitability in 2023.
Twilio CEO Jeff Lawson explained in a letter to colleagues that the firm made the decision to reduce headcount in order to operate more effectively and match investments with goals. Though “very painful,” the choice was nonetheless “sensible and important,” according to him.
“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,” Lawson said in the letter. “I take responsibility for those decisions, as well as the difficult decision to do this layoff.”
According to Lawson, the affected employees work in departments where the business can run more effectively and where consumers “succeed without as much human engagement.”
Twilio stated that it anticipates expenses associated with the reorganization plan to range from $70 million to $90 million.
On Wednesday, Twilio stock increased 10% as a whole.