Twilio Sheds 17% of Workforce in New Round of Layoffs

| Updated
by Tolu Ajiboye · 3 min read
Twilio Sheds 17% of Workforce in New Round of Layoffs
Photo: Twilio

Twilio announced new layoffs, the second in a few months, to better position itself and maximize its product and service potential.

Twilio (NYSE: TWLO) is planning a new round of layoffs to restructure its internal organization. According to the communications support specialist, the downsizing, which comes months after its September layoffs, would affect 17% of its staff. Twilio also added that it intends to create two new business units, namely Twilio Communications and Twilio Data & Applications, as part of the forthcoming company reorganization.

Twilio CEO Sheds Light on New Layoffs

Commenting on Twilio’s developments, the company’s co-founder and chief executive officer Jeff Lawson explained in a memo to all staff:

“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.”

Furthermore, Lawson expressed regret at “parting ways with approximately 17% of our team.”

In the memo, Lawson further explained in detail why Twilio had to resort to new layoffs once more. Furthermore, the company’s CEO also elucidated the process involving the release of affected staff. According to him, departing staff within and outside the US will be eligible for various forms of compensation. These may include base pay, health coverage, and career resources.

Lawson reiterated that despite the difficulty in letting more people go, Twilio would be in a better position to maximize its potential.

“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,” said he.

Expanded Services

Lawson went into detail regarding Twilio’s expanded suite of products and services. In his opinion, these products, mainly acquired via acquisitions and product developments, have not attained the same maturity level as Twilio’s primary offerings. Referencing Twilio’s acquisition of tech startup Segment as an example of the need for products to do more, Lawson said:

“In Communications, we have to get more efficient. For Segment, Flex, and Engage, we must accelerate growth. These are distinctly different tasks for our teams, and our current structure is slowing our progress toward both these goals, which are critical to our growth, our profit, [as well as] our Customer Engagement Platform ambitions.”

Each newly established Twilio business unit will have its own president, with Elena Donio heading “Data” and Khozema Shipchandler presiding over “Communications.” In addition, each division would also have its own sales, research & development, and admin resources. With these structures, the Twilio assumption is that conducting different strategies for each business part becomes more straightforward.

According to Lawson, the latest round of layoffs could particularly impact the Communications side of Twilio’s business. The reason is that the company’s Communications unit has grown too big with a lot of extraneous elements.

Last September, Twilio laid off 11% of its workforce. This affected between 800 and 900 people of the company’s 7,800 headcounts. At the time, the company resorted to downsizing because of the broader economic downturn that characterized 2022.

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Tolu Ajiboye
Author Tolu Ajiboye

Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge. When he's not neck-deep in crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.

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