Twilio to cut workforce by about 5%

In a regulatory filing, Twilio said it has committed to a further workforce restructuring plan intended to streamline operations and accelerate the company’s path to delivering profitable growth. The December Plan includes the elimination of approximately 5% of the company’s current workforce. As a result of the December Plan, the company estimates that it will incur approximately $25M-$35M in charges in connection with the workforce reduction, consisting of expenditures for employee transition, notice period and severance payments, employee benefits, and related facilitation costs, substantially all of which are expected to result in future cash outlays. The company expects that the majority of the restructuring charges related to the December Plan will be incurred in the fourth quarter of 2023 and that the execution of the December Plan, including cash payments, will be substantially complete by the end of the first quarter of 2024.