Twilio, a cloud communications platform, has announced plans to reduce 17% of its workforce and close some of its offices in order to improve profitability. This is the company’s second layoff in five months. However, it is unclear whether the figure includes the impact of the September 14 retrenchment.
The cuts, according to the company, are part of a strategic review of its operations and are intended to help it focus on its core business while also reducing costs. It also states that the company will be divided into two divisions: Twilio Communications and Twilio Data and Applications. Sales, R&D, and operational resources will all be included in both units.
Twilio had aggressively hired during the pandemic to meet the brisk demand for cloud service providers from businesses looking to operate in the midst of lockdowns. Employees increased from 4,629 in 2020 to 7,867 by the end of 2021.
Twilio has made significant investments in its business in recent years but has yet to turn a profit following the pandemic. The company has faced increased competition in the cloud communications market, as well as investor pressure to improve financial performance.
Despite the cuts, Twilio says it is still committed to its customers and will invest in its technology platform. The company expects the restructuring to be completed by the end of the year and has stated that it will provide support and assistance to those affected by the job cuts.
The sources for this piece include an article in Reuters.