(Bloomberg) -- Twilio Inc. will cut 5% of its workforce in its third major headcount reduction.
“While I know it’s hard to undergo so much change, it’s all part of the necessary transition to profitable growth,” Chief Executive Officer Jeff Lawson said in a memo to employees Monday.
The cuts primarily affect salespeople for Twilio’s consumer data platform and contact center software, Lawson wrote, adding that previous restructures “underachieved” their goal of helping these business units grow more rapidly.
These are the third recent cuts Twilio has made. The company has shed more that 3,000 workers since September 2022, or about one-third of its total workforce at the time.
Spotify Technology SA also announced a third round of layoffs Monday, cutting nearly one-fifth of its workforce.
Twilio’s shares fell 1.1% at 10:39 a.m. in New York. The company, which makes software that allows businesses to communicate with their customers, has struggled to maintain its once-high revenue growth and investor excitement. Twilio recently announced it would roll out new artificial intelligence products for its marketing services.
Last month, the Information reported that activist investor Anson Funds had built a stake in the company, and was pushing for a sale of Twilio in entirety, or a divestment of the business unit where the cuts are focused.
A Twilio spokesperson said the fresh cuts are unrelated to activist news. “Over the past year, Twilio has been on a path of reorienting the business towards profitable growth,” the spokesperson said.
The company expects to incur $25 million to $35 million in charges related to the cuts, it said in the filing. The restructuring will be largely completed by the end of the year.
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