Twilio Joins Other Tech Firms, To Axe 11% Of Its Workforce, Reaffirms Q3 Outlook

• Twilio Inc (NYSE: TWLO) prepared to slash its staff by nearly 11% to reduce operating costs and increase operating margins.
• Twilio looks to incur $70 million - $90 million in charges over its restructuring plan, which includes staff layoffs, with the majority in the third quarter of 2022.
• CEO Jeff Lawson said the company decided to lay off staff to run more efficiently and to align the company's investments with its priorities.
• Lawson said the employees impacted are in areas of the company that can operate more efficiently and where customers can "succeed without as much human intervention."
• Twilio shares plunged in August after issuing third-quarter guidance below estimates. The company has reaffirmed its Q3 guidance.
• For Q3, Twilio expects to report a net loss of between 43 cents and 37 cents on revenues of between $965 million and $975 million.
• The company's outlook also prompted several analysts to downgrade and slash price targets on the stock.
• In August, Twilio hackers compromised over 130 organizations during their hacking spree that netted the credentials of nearly 10,000 employees.
• Twilio's recent network intrusion aided the hackers in accessing the data of 125 Twilio customers and companies after tricking employees into handing over their corporate login credentials and two-factor codes.
• Recently, Snap Inc (NYSE: NYSE:SNAP) also shared plans to trim 20% of its workforce to beat the economic slowdown and Apple Inc's (NASDAQ: NASDAQ:AAPL) privacy update.
• Tech giants like Alphabet (NASDAQ:GOOGL) Inc (NASDAQ: GOOG) (NASDAQ: GOOGL) Google, and Meta Platforms Inc (NASDAQ: META) warned employees to improve performance to retain jobs.
• Price Action: TWLO shares traded higher by 4.42% at $74.03 on the last check Wednesday.
• Photo via Wikimedia Commons

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