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Twilio slashes 5% of workforce

Published 05/12/2023, 02:30 am
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Investing.com -- Twilio (NYSE:TWLO) has announced that it will slash a further 5% of its current workforce as part of a broader overhaul at the cloud service provider.

In a filing with the U.S. Securities and Exchange Commission, the group said the cuts will help to "streamline its operations" and put it on a path to "delivering profitable growth."

Twilio noted that it will be hit with between $25 million to $35 million in charges related to the restructuring push, adding that the majority of the expenses will be incurred in the final three-month period this year. The execution of the plan, including cash payments, "will be substantially complete by the end of the first quarter of 2024," Twilio added.

It flagged that the actual expenses "may differ materially" from its initial estimates.

Shares in Twilio oscillated around the flatline in early U.S. trading on Monday.

Technology firms have been rolling out several rounds of employee dismissals in recent months as they attempt to stabilize their operations during an era of elevated interest rates and macroeconomic uncertainty. Elsewhere on Monday, music streaming service Spotify (NYSE:SPOT) said it is planning to lay off 17% of its workforce to reduce costs and adjust for a slowdown in growth.

San Francisco-based Twilio previously eliminated around 17% of its roles and shuttered some offices earlier this year in a bid to bolster profitability. At the time, it was the company's second instance of job cuts in five months.

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