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Jeff Lawson, co-founder and chief executive officer of Twilio Inc., center, rings the opening bell on the floor of the New York Stock Exchange in New York, Sept.17, 2018.
Michael Nagle | Bloomberg | Getty Images
Twilio will lay off 11% of its workforce as part of a major restructuring plan, according to an SEC filing published Wednesday.
Twilio had 7,867 employees as of Dec. 31, 2021.
The cloud communications software builder has been striving for profitability in 2023, and the restructuring aims to improve operating margins, create a better selling capacity and reduce operating costs.
In a letter to employees, Twilio CEO Jeff Lawson said the company decided to lay off staff in order to run more efficiently and to align the company’s investments with its priorities. He said the decision was “extremely difficult,” but also “wise and necessary.”
“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.”
Lawson said the employees impacted are in areas of the company that can operate more efficiently and where customers can “succeed without as much human intervention.”
Twilio said it expects to incur between $70 million and $90 million in charges related to the restructuring plan.
Shares of Twilio closed up 10% on Wednesday.
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Image and article originally from www.cnbc.com. Read the original article here.