Due to great efforts to maintain profitability, this Monday, cloud communications company Twilio Inc announced job cuts by 17% and the closure of some offices, With this, the company joins a technology industry conglomerate that has chosen this strategy to cut costs.
In the midst of economic instability, high interest rates and declining demand, many companies are restructuring their payrolls to sustain themselves over time. In this case it would be the second time in less than 6 months that Twilio has used this measure.
CEO and co-founder Jeff Lawson noted that the company will be reorganized into two divisions: Twilio Communications and Twilio Data and Applications.Therefore, he mentioned that the decision to cut is due to the fact that “communications and software are at different stages of the life cycle and have different operational needs,” he said.
While the San Francisco, California-based company saw a surge in revenue during the pandemic, growth has slowed to date. After the announcement of layoffs, the company’s share increased by 2% and stocks that fell 80% in 2022 have surged in value in the most recent quarter.
Twilio reportedly had about 9,000 employees at the end of September, and under the new plan, both units that will be rebuilt will include the areas of sales, research, development, and operations resources.
Last September, the telecom provider laid off 11% of its workforce. Lawson spoke of it at the time: “Over the past two years, Twilio has grown at an incredible rate. It was too fast and not enough attention to the most important priorities of our company,” he said.
In a message to employees The CEO stated that he takes full responsibility for the decisions that he made regarding the company, “as well as the difficult decision to leave,” he stressed.
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Source: La Opinion
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