Twilio has announced that it is set to lay off approximately 17 percent of its workforce as part of a restructuring plan.
According to a company filing with the SEC, Twilio had 8,992 employees in September 2022, so it is estimated that around 1,500 employees are set to depart.
Twilio staff were told about the lay offs in a company-wide email sent from Twilio CEO Jeff Lawson.
In the email, Lawson said: "A company optimizes for its environment. For the last 15 years, we ran Twilio for growth, building a tremendous customer base, product set, and revenue base.
"But environments change – and so must we. Now we have to prioritize profit far more than before. 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.
"We have to spend less, streamline, and become more efficient. To do that, we’re forming two business units: Twilio Communications and Twilio Data & Applications.
"And today, I'm unfortunately bearing the news that we’re parting ways with approximately 17% of our team."
As well as the laying off of staff, Twilio is planning a shift to remote work and is aiming to shut down some offices over the coming months.
Lawson has stated that the company intends to maintain a "handful" of global hubs and satellite offices.
Twilio has seen low office utilisation from its employees and aims to redirect some of the cost savings into higher travel budgets to allow employees to see each other more often.
A Rough Patch?
Twilio laying off around 1,500 employees comes just five months after the company laid off 11 percent of its workforce in September 2022.
At the time, Twilio put the major lay offs down to the need to increase the company's profitability.
