Twilio (NYSE:TWLO) stock is rising on Wednesday after the programmable communication tools company revealed plans to lay off employees.
According to a filing with the U.S. Securities and Exchange Commission (SEC), the company intends to lay off 11% of its workforce. This is part of a restructuring plan to “reduce operating costs, improve operating margins” and shift selling capacity toward accelerating software sales.
Twilio is expecting to incur charges between $70 million and $90 million connected to its workforce cuts. The company says this will occur in the third quarter of 2022 and that the restructuring plan should reach completion by the end of Q4.
TWLO Is Shifting Toward Profitability
Twilio started informing affected employees about the layoffs today in a letter from company cofounder and CEO Jeff Lawson. A portion of that letter is available below:
“Twilio has always been a growth company. And as you know, we’re committed to being a profitable growth company. At our scale, being profitable will make us stronger. It requires us to ask more rigorously which activities and investments are working. It forces us to ask where we have good alignment internally to amplify each of our efforts. This discipline requires us to ask if our investments are getting us where we need to go.”
TWLO stock is up more than 6% as of Wednesday morning but down over 70% since the start of the year.
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
