SAN FRANCISCO - Cloud communications company Twilio (NYSE:TWLO) disclosed to the SEC today that it is cutting its workforce by an additional 5% as part of its ongoing restructuring efforts to achieve profitable growth.
This decision is expected to result in restructuring charges ranging from $25 million to $35 million, primarily impacting the company's fourth-quarter financials. Despite this, Twilio's share price remained relatively stable in the U.S. market today, as of this writing.
The company has been actively streamlining its operations in response to economic challenges and the need for increased efficiency. Earlier this year, Twilio had already reduced its workforce by approximately 17% and shut down offices as part of these cost-cutting measures. These strategic changes have been undertaken while facing pressure from activist investor Anson Fund, which has called for strategic alterations following a significant investment in the company.
Twilio's operational streamlining has included closing divisions such as IoT and ValueFirst. Despite these reductions, Twilio has maintained a strong financial outlook for both the fourth quarter and the full year, following stellar third-quarter results that led to raised future earnings expectations.
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