Twilio Inc. to Cut Workforce and Incur Severance Charges

# Twilio Inc. to Cut Workforce and Incur Severance Charges

Twilio Inc.'s stock (TWLO) fell by 2% in early trading on Monday, following the announcement that the cloud computing company plans to reduce its global workforce by 5%. This decision will result in severance charges amounting to $25 million to $35 million. According to the company's most recent 10-K filing with the Securities and Exchange Commission, as of December 31, 2022, Twilio had 3,590 employees.

The majority of these severance charges are expected to be recorded in the fourth quarter, with the entire plan set to be completed by the end of the first quarter in 2024. It is important to note that Twilio remains committed to its previously provided guidance for the fourth quarter and fiscal year as outlined in November.

Twilio's CEO, Jeff Lawson, assured that all affected employees will receive an email within the next two hours informing them of their employment status. Despite this workforce reduction, it is worth mentioning that Twilio's stock has still demonstrated a considerable year-to-date growth of 36%, while the S&P 500 has gained 19.7%.