4th December 2023 – (San Francisco) Cloud communications titan, Twilio Inc., announced on Monday that it anticipates a reduction of approximately 5% of its total workforce, translating to around 295 employees, by the first quarter of 2024. The decision forms a part of the company’s strategic plan to attain profitable growth.
Projected restructuring costs associated with this downsizing are estimated between $25 million to $35 million. These costs are expected to be incurred in the final quarter of 2023.
This move is akin to a growing trend amongst tech companies, who, after an initial round of layoffs at the year’s start, are once again trimming their workforce. Recent announcements of similar reductions have originated from diverse companies including Spotify and Microsoft’s LinkedIn.
Earlier this year, Twilio undertook a significant cut, reducing 17% of its staff and shuttering some of its offices.
Despite this announcement, the San Francisco-based cloud service provider reaffirmed its financial guidance for the fourth quarter and the fiscal year concluding on 31st December, 2023. This suggests that the company remains confident in its operational and financial strategies amidst this period of workforce reduction and restructuring.