Twilio (NYSE:TWLO) layoffs news on Monday has shares of the programmable communication tools company’s stock heading higher.
As part of a new restructuring plan, Twilio intends to cut 17% of its workforce while also closing down some offices. The goal of this plan is to reduce operating costs and improve operating margins, as well as accelerate profitability.
Twilio is expecting to suffer a charge of $100 million to $135 million in connection to this restructuring plan. That includes “cash expenditures for employee transition, notice period and severance payments, employee benefits, and related facilitation costs.” It expects to see most of these charges in the first quarter of 2023.
The office closings will come with their own charges of $10 million to $25 million. The company says it expects to deal with these charges in the current year. This builds on prior office closings announced in May 2022.
Twilio Layoffs Boost TWLO Stock
Following the Twilio Layoffs news, TWLO stock is gaining alongside heavy trading volume. This has more than 4.3 million shares of the stock changing hands as of this writing. To put that in perspective, the company’s daily average trading volume is about 3.6 million shares.
TWLO stock is up 2.4% as of Monday morning and is up 22.1% since the start of the year.
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On the date of publication, William White did not have (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.