Twilio Announces 5% Workforce Reduction Amid Activist Pressure

The layoffs, affecting around 300 employees, are largely due to underperformance in the Data & Applications unit, with restructuring charges expected to be between $25 to $35 million.

• Twilio Inc., the cloud communications platform, is laying off 5% of its workforce, which equates to around 300 employees.
• The layoffs are largely due to underachievement in the company's Data & Applications unit, which has been targeted by activist investors for divestment.
• Twilio's CEO, Jeff Lawson, has stated that the company is making changes to how it sells its Flex digital engagement product, with many Flex sales positions being eliminated.
• Twilio's shares remain flat following the announcement, with the company expecting to incur $25 to $35 million in restructuring charges.
• Affected employees will receive 12 weeks of base pay plus one week for every year of service, as part of their severance package.

6 Articles

The Information The San Francisco Standard TechCrunch CNBC CNA CNA