Twilio announces another round of layoffs, to cut 17% of its workforce

Twilio, a customer communication and marketing software company, said yesterday that it will reduce its global workforce by about 17%.

This news comes just a few months after the company laid off 11% of its workforce. At the time, Twilio CEO Jeff Lawson said that the company had been growing too quickly over the last few years, and they want to scale back operations so it can better focus on core products and services.

Per Twilio's latest earnings report, the company had 8,992 employees as of September 30, 2022. It then let go of about 816 people during its first round of layoffs. With the company now cutting 17% of its workforce, means that about 1,400 people will be given pink slips. Once Twilio proceeds with its second wave of layoffs, the company will have bidden goodbye to more than 2,000 people.

"We have to spend less, streamline, and become more efficient," Lawson wrote in an email sent to employees Monday. "To do that, we’re forming two business units: Twilio Communications and Twilio Data & Applications." The former will be led by Elena Donio while the latter will be spearheaded by Khozema Shipchandler. Both divisions will have its own sales, R&D and admin resources.

Moreover, Lawson said that the communications division had especially become "too big." "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 stated.

"I'm sure you're wondering why we're making additional cuts to the team after the September layoffs. At that time, we sought to streamline the company as it was then structured. Today's news, however, is more driven by the need to organize ourselves differently for success – and the changes needed to enact this new structure. Both the reorganization and the reductions increase our ability to drive profit and growth, both of which are required in this new environment."

Employees affected by the new round of layoffs will receive 12 weeks of base pay plus one week for every year of completed service at Twilio. They will also receive continued health coverage, career resources, and other support to help with their transition.

While the company has decided to discontinue its four-week paid sabbatical that employees can avail every three years, Lawson announced that those who are already eligible, or will become eligible for it by the end of 2023, will still be able to take it.

According to a U.S. Securities and Exchange Commission filing, Twilio will spend approximately $100 to 135 million in line with the workforce reduction. The company board will also lower Lawson’s annual base salary from $134,000 per year to $65,535.