Cloud communications firm Twilio is planning to reduce its workforce by approximately eleven per cent, CEO Jeff Lawson said in a message to Twilio employees, according to the filing with the US Securities and Exchange Commission.
As per various media sources, Lawson said in his message that ‘they [Twilio] have made the extremely difficult decision to restructure and reduce Twilio’s workforce by 11 per cent.’
“I am not going to sugarcoat things. A layoff is the last thing we want to do, but I believe it’s wise and necessary. Twilio has grown at an astonishing rate over the past couple of years. It was too fast, and without enough focus on our most important company priorities. I take responsibility for those decisions and the difficult decision to do this layoff,” he added.
Twilio’s move is the latest in the ‘layoff’ trend made by major brands like Meta, Snap, Calm and more, who have laid off employees in mass numbers citing reasons from incoming recession, rising inflation to low ad sales and fast growth.
Around 800 to 900 Twilio employees are expected to be fired out of the workforce headcount of 7,860 as of 2022, CRN reported. The job cuts will impact Twilio’s research and development, administrative and general departments.
The move is also ironic considering Twilio had nearly doubled its employee headcount over the past several years, while also acquiring several companies like services specialist Zipwhip and data security company Ionic Security.
With the layoff plan in motion, the company expects to incur approximately $70 million to $90 million in charges in connection with the restructuring plan. The plan seems to consist of cash expenditures for employee transition, notice period and severance payments, employee benefits, and related facilitation costs.
In his message, Lawson also said that he was “deeply sorry” to have to let go of his Twilio employees.
“I want to do our best to take care of you in this transition and set you up for success in what comes next. All impacted Twilions globally will receive at least 12 weeks of pay, plus one week for every year of service at Twilio,” he added.