Twilio plans to lay off 17% of staff, internal email shows
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- Twilio plans to lay off 17% of its staff, according to an internal email.
- Employees were expecting changes after top execs scheduled an unusual meeting on Super Bowl Sunday.
- The company is also reorganizing to create new business divisions.
Twilio plans to cut 17% of its staff, according to an email CEO Jeff Lawson sent to employees on Monday.
"This is upsetting to be sure, so I want to share with you the reasons for making this tough decision, as well as some other changes," Lawson wrote. "As we've refined our strategy over the past several months, it's become apparent we need significant structural changes to better execute our strategy.
Employees were expecting big changes after Lawson scheduled an unusual meeting with other top executives of the tech company about an hour before the Super Bowl started on Sunday.
The company is also reorganizing to create new business divisions: Twilio Data & Applications, led by Elena Donio, and Twilio Communications, led by Khozema Shipchandler. Both will include sales, research and development, and operational resources, according to the email.
Lawson's email said affected employees would be notified within three hours of the announcement via their personal addresses. Severance is 12 weeks of base pay, plus one week for every year of service and the full value of Twilio's Feb. 15 stock vesting.
The company did not respond to a request for comment.
Twilio's business boomed during the pandemic when demand for its communication services soared, and it hired thousands of new staff. The stock jumped, making Lawson a billionaire on paper.
Now that COVID-19 restrictions are looser, Twilio's fortunes have dimmed and investors are pressing the company to cut expenses and become profitable. The shares have plunged from over $400 to about $60 now. In September, Twilio announced layoffs of 11% of its workforce.
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