Twilio cuts 300 jobs in third round of layoffs this year
CALIFORNIA, UNITED STATES — Cloud communications company Twilio is planning its third significant reduction in staff numbers, cutting 300-400 workers or around five percent of its workforce.
The layoffs impact sales teams for Twilio’s consumer data and contact center software products.
Since September 2022, Twilio has cut over 3,000 employees, reducing its staff by about a third.
“We’ve made tremendous progress in Communications, even overachieving on our goals; however, we’ve underachieved on growth in TD&A,” said spokesperson Kari Ramirez, referring to Twilio’s Technology, Data, and Analytics division.
According to CEO Jeff Lawson, previous reorganizations failed to accelerate growth as intended. Still, the company promised that impacted employees will receive severance packages that include 12 weeks of their basic salary plus an additional week’s pay for each year they have worked at the company.
The cuts come as Twilio faces challenges in sustaining revenue growth. The company recently became the target of activist investors Anson Funds and Legion Partners to sell the entire company or divest its data and applications business.
Twilio’s stock dropped 1.1% following the announcement, reflecting a difficult year for tech workers.
Layoffs in the tech industry now reach nearly 250,000, nearing last year’s total as companies like Meta, Amazon, and Salesforce also making significant workforce cuts recently to curb costs.
