Twilio has dropped a huge bomb on a large number of its employees. The company executives have made an alarming announcement about letting go of multiple employees.
Twilio to Terminate 1,500 Employees
The Twilio executives made an announcement pertaining to terminating their employees. The company has announced that it will be cutting off 17% of its total employees.
The particular figure translates to 1,500 jobs that the company is planning to eliminate. According to the workforce report collected on September 30, 2022, the total number of employees the company had were 8,992.
Based on the total workforce recorded in September 2022, the employees that are to be terminated would be 1529.
The total workforce was shared by Twilio officials in the filing submitted to the US Securities and Exchange Commission.
The officials made an official announcement on the matter through their website. They also shared the same information in their blog post.
Twilio Announces another Termination
This is another term that the company has announced within a five-month period. It was back in September that the company announced laying off a large number of its employees.
Back in September, the company announced that they were laying off 11% of its total employees. At that time, the company announced that terminating the workforce was part of its restructuring strategy.
However, this time it seems that the reason behind the termination of the employees is more than that.
Jeff Lawson’s Email to Employees
On Monday, Jeff Lawson, the CEO at Twilio sent an email to all of the company emails and it circulated across the board.
It was in the email where the Twilio CEO revealed to the employees that they were going to let go of more than 1,500 employees.
According to Lawson, their company needs to make it through the difficult times and succeed. In order to achieve that, the company has to reorganize, which is going to be a drastic move from their end.
They had to make complicated decisions to make it happen and terminating a great chunk of their workforce was part of it.
He added in the email that the changes they are making tend to hurt. Unfortunately, this was the only option they could think of and they had to make it happen.
Lawson stated that in the upcoming weekends, they will be making necessary changes as part of their business restructuring.
They will continue working together and ensure that the new structure is implemented and is in order.
Twilio’s Share Price Movement
Although the announcement was no less than a huge blow to the employees, it worked like a charm for the shareholders.
The investors regained their lost trust in the company and they started to invest heavily in the company’s shares. The data shows that the company’s shares have surged over 2% since the company made the announcement.
It was the Monday trading session when a significant push was recorded in the share prices for the company.
Fewer Expenditures and More Efficiency
Apart from sending an email to the employees, Lawson also revealed what he plans on doing for the future of the business.
He announced that they are in the process of forming two new units for their business. The purpose of forming the units would be to let the company operate efficiently as well as lower its expenditures.
Lawson revealed that the first unit would be Twilio Communications. He went on to confirm that Khozema Shipchandler will be leading the particular department.
The second unit would be Twilio Data & Applications, and Elena Danio is responsible for leading the particular unit.
They realized the moment they came up with two new business units that their business was growing bigger.
This meant that they had to bring in structural reforms to their business and setting the resources correctly is the first reform.