SAN FRANCISCO — Software maker Twilio Inc. will trim its workforce by 11% as part of a major restructuring in the wake of rapid pandemic-era growth, according to a regulatory filing published Wednesday.
The staffing overhaul aims to improve operating margins, boost selling capacity and reduce operating costs in the San Francisco-based cloud communications software builder’s bid to achieve profitability in 2023, CNBC reported.
The company, best known for its direct-to-consumer text messaging services, is now positioning itself to better compete with industry leaders Salesforce Inc. and Adobe Inc., bolstered by the recent acquisition of both identity verifier Boku Identity Inc., toll-free messaging service Zipwhip and customer data provider Segment, Bloomberg reported.
In turn, Twilio’s workforce swelled by nearly 35% during the past year from 6,334 employees to 8,510 at the end of June, the news outlet reported.
Twilio CEO Jeff Lawson told employees in a letter that the “wise and necessary” layoffs will help the company better align its investments with its priorities and boost efficiency, CNBC reported.
“Twilio has grown at an astonishing rate over the past couple years. It was too fast, and without enough focus on our most important company priorities,” Lawson said in the letter. “I take responsibility for those decisions, as well as the difficult decision to do this layoff.”
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