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San Francisco-headquartered corporate communications technology giant Twilio is laying off 11 percent of its workforce as part of a broader company restructuring — a move that will eliminate more than 800 employees.
The amendment was approved by the company’s board of directors on Monday, according to an SEC filing published Wednesday, first reported by CNBC. In total, the company employs 7,867 people as of December 2021.
CEO Jeff Lawson wrote in a letter to Twilio employees — or Trillion — that Lawson will take responsibility for the company’s accelerated growth and the resulting round of layoffs. The tech industry has held back the pandemic-era expansion amid big economic headwinds and investor fears, which have led to layoffs and hiring penalties.
“Twilio has grown at an incredible pace over the past two years,” he wrote in the letter. “It was too fast, and we weren’t focusing enough on our company’s most important priorities.”
In August, Twilio issued third-quarter forecasts that missed analysts’ estimates, sending the stock lower. Lawson, speaking to CNBC, said the company is on track to become profitable by 2023.
Laid-off employees will receive 12 weeks of severance pay and an additional week for each year they worked at Twilio, Lawson said. Employees will also receive the full value of Twilio’s next stock vest. And in an unusual recognition of its workers on work visas, Lawson said the company would “provide more support to team members in the hope of minimizing disruption to them and their families.”
Twilio is a cloud communications company that provides messaging systems to businesses like Lyft, Netflix and Airbnb.
The company estimates the restructuring will cost between $70 million and $90 million.
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