Twilio winding down some perks, ‘we’ve gotten too big,’ says CEO

In a letter to Twilio team members from CEO Jeff Lawson, the company said: "As we’ve refined our strategy over the past several months, it’s become apparent we need significant structural changes to better execute our strategy. This is because the two parts of our business – communications and software – are at different lifecycle stages and have different operating needs. In Communications, we have to get more efficient. For Segment, Flex, and Engage, we must accelerate growth. These are distinctly different tasks for our teams, and our current structure is slowing our progress toward both these goals, which are critical to our growth, our profit, and our Customer Engagement Platform ambitions. As a result, we’re forming two business units: Twilio Data & Applications, led by Elena Donio, and Twilio Communications, led by Khozema Shipchandler… When we look at these two business units on their own, it’s clear that we’ve gotten too big, especially in Communications… Today’s news, however, is more driven by the need to organize ourselves differently for success – and the changes needed to enact this new structure. Both the reorganization and the reductions increase our ability to drive profit and growth, both of which are required in this new environment." Lawson also said: "We’re winding down some of the perks we’ve historically offered, including our book and wellness allowances. We’ve also decided to sunset Twilio Recharge, which I believe in, but which (in retrospect) was ill-timed given our profitability goals. Those who are already eligible or will become eligible for Recharge by the end of 2023 will still be able to take it. We have not, however, touched the most impactful benefits that are most essential to Twilions’ health and financial security, including, medical, retirement, and the Employee Stock Purchase Program. As part of our shift to remote work, we plan to close some Twilio offices over the next few months, with the intent of maintaining at least a handful of global hubs and satellite offices."