What’s going on:
Twilio has just announced a round of layoffs that are set to affect nearly 17% of its global workforce. This new development comes less than a year after the tech giant conducted its first round of job cuts in September 2022, where 11% of its staff were let go.
“We have to spend less, streamline, and become more efficient. To do that, we’re forming two business units: Twilio Communications and Twilio Data & Applications. And today, I’m unfortunately bearing the news that we’re parting ways with approximately 17% of our team,” Twilio CEO Jeff Lawson wrote in an email to his employees.
Why it matters:
Affected workers will be compensated with 12 weeks’ base salary and an additional week for each year of service, as well as medical benefits and career assistance.
Unfortunately, a few benefits are being discontinued, including book and wellness reimbursements and the much-coveted Twilio Recharge, which is a four-week paid respite that employees could enjoy every three years.
Twilio is just one of many companies conducting substantial layoffs at the moment.
How it’ll impact the future:
The company is transforming their internal operations by establishing two new business units: Twilio Communications and Twilio Data & Applications.
Under the new system, Elena Donio will head Data & Applications and Khozema Shipchandler will head Communications. Each division will have their own respective sales, R&D and administrative resources, allowing the organization to formulate different strategies for each business segment.
Unfortunately, the communications division seems to have taken the brunt of the layoffs.
Twilio anticipates expenses of $100 to $135 million due to staff cutbacks, as well as additional expenses incurred by shutting down offices.
