Cloud communications software company Twilio will lay off 17% of its team, close offices and restructure its business, CEO Jeff Lawson announced Monday. File photo by Negative Space/Unsplash
Feb. 13 (UPI) — Cloud communications software company Twilio will lay off 17% of its team, close offices and restructure its business, CEO Jeff Lawson announced Monday.
Lawson cited prioritizing profit “far more than before,” spending less and streamlining operations as the reasons for the layoffs in an email sent to employees and later shared in a press release. The company’s founder said Twilio is moving into a new phase of its strategy after spending 15 years focused on growth.
In September, Twilio cut ties with 11% of its global staff. CNBC reports that Twilio had about 8,992 employees before the September layoffs.
“I know this company — the great people, the tremendous empathy, our collective desire to do the right thing. These changes hurt,” Lawson said.
“The weeks ahead will be about processing all this change and working together to acclimate to our new structure. While tremendously difficult, 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.”
The company will also lean into remote work after finding office use has been low across the board. Few satellite hubs will remain open and the cost savings will be used to increase travel budgets, Lawson said.
Lawson said the company will be divided into two units: Twilio Communications and Twilio Data and Applications, which will be software focused. Both units will have research and development arms.
The communications and software branches of the company had grown out of step with each other before this restructure, according to Lawson. He specified that communications had especially grown too big, which limited its ability to run efficiently.
“It is painful to part ways with so many talented people — but it’s necessary to get our two businesses into the right shape to succeed,” he said.
According to the press release, domestic employees who are terminated will be eligible to receive their base pay for 12 weeks plus an additional week per year they were with the company. International employees will receive the same benefits and further guidance in accordance with local employment laws. All of those laid off are to receive the full value of their stock options.
Twilio shares opened at $64.21 Monday and fell to $62.21 by the early afternoon.