Twilio lays off 11% of its total workforce as tech layoffs surpass 41,000 | tech news

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Cloud communications provider Twilio will lay off 11% of its total workforce as part of a sweeping restructuring plan, according to an SEC filing released Wednesday.

According to the filing, Twilio said the restructuring plan will involve the elimination of approximately 11% of the company’s current workforce. As of December 31, 2021, the company employed 7,867 people.

“On September 12, 2022, the Compensation and Talent Management Committee of the Board of Directors of Twilio Inc. (the “Company”) approved a restructuring plan aimed at reducing operating expenses, improving operating margins and shifting the Company’s distribution capabilities to accelerate software sales (collectively, the “Restructuring Plan”). The restructuring plan entails the elimination of approximately 11% of the company’s current workforce.”

In a separate letter to employees, Twilio CEO Jeff Lawson said the company had decided to lay off employees to work more efficiently and align the company’s investments with its priorities. He said the decision was “extremely difficult” but also “wise and necessary”.

“Twilio has grown at an amazing rate over the past few years. It was too fast and lacked sufficient focus on our key business priorities,” Lawson said in the letter. “I take responsibility for those decisions as well as for the difficult decision to make this firing.”

Twillio is the latest in a string of tech companies to announce downsizing. In recent months, tech companies, crypto exchanges, financial firms, and banks have all reduced their headcount and slowed hiring as global economic growth slows due to the looming recession, inflation, higher interest rates, the energy crisis in Europe, and the ongoing war in Ukraine.

The global economic downturn that began in the second quarter of this year is beginning to have a major impact on technology companies. As we reported last month, over 32,000 technicians lost their jobs in July. That number has since risen to about 41,000 in the first week of September, according to the latest tally from CrunchBase, a platform for finding business information about private and public companies.

In recent months, tech companies, crypto exchanges, financial firms, and banks have all reduced their headcount and slowed hiring as global economic growth slows due to the looming recession, inflation, higher interest rates, the energy crisis in Europe, and the ongoing war in Ukraine.

Meanwhile, US tech layoffs could continue for the foreseeable future following the report of fresh inflation data. Yesterday, the six largest US tech companies lost over $500 billion in just one day of the stock market crisis. Apple, the world’s most valuable public company, suffered the biggest loss, closing at $153.84, down nearly 6%. The carnage didn’t stop there. Microsoft is down over 4%, meta platforms down over 7% and chip giant Nvidia is down 9.5%.

Founded in 2011 by Calvin French-Owen, Ian Storm Taylor, Ilya Volodarsky and Peter Reinhardt, Segment provides the customer data infrastructure that helps organizations put their customers first. The segment provides a unified view of the customer by unifying customer touchpoints across all platforms and channels.

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