Twilio, a Cloud communications platform, is implementing a strategic move to achieve profitable growth by reducing its workforce. Approximately 5% or 295 employees will be laid off by the first quarter of 2024. This decision comes after the company previously laid off 17% of its staff and closed some offices just ten months ago. Twilio expects to incur expenses of $25 million to $35 million in the final three months of this year.
In September 2022, Twilio underwent a major restructuring plan, resulting in an 11% reduction in its total workforce. As of December 31, 2021, the company had 7,867 employees. This downsizing trend is not unique to Twilio, as various tech companies, crypto exchanges, financial firms, and banks have also been reducing their headcount and slowing down hiring due to global economic challenges such as recession, inflation, higher interest rates, the energy crisis in Europe, and the ongoing war in Ukraine.
According to Layoffs.FYI, an organization that follows big tech layoffs, over 1,141 tech companies have laid off a total of 253,629 workers so far this year. Twilio’s decision to reduce its workforce aligns with this broader trend. Founded in 2011, Twilio’s mission is to provide customer data infrastructure that prioritizes businesses’ understanding of their customers. By unifying customer touchpoints across platforms and channels, Twilio’s Segment offers a comprehensive view of the customer.