Cloud communications software maker Twilio lays off 17 percent of workforce

The cloud communications software maker Twilio on Monday announced it’s cutting 17 percent of its workers as layoffs surge in the tech sector. 

“We have to spend less, streamline, and become more efficient,” Twilio CEO Jeff Lawson said in an email to staff. “And today, I’m unfortunately bearing the news that we’re parting ways with approximately 17% of our team.”

The new round of job reductions comes after Twilio cut approximately 11 percent of its staff back in September, as the company works to “drive profit and growth.”

“I’m sure you’re wondering why we’re making additional cuts to the team after the September layoffs. At that time, we sought to streamline the company as it was then structured. 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,” Lawson said.

Affected U.S. employees received additional emails within three hours of Lawson’s announcement and are eligible for 12 weeks of base pay and continued health coverage. 

As part of a broader restructuring and cost-cutting effort, Twilio says it’s also cutting worker perks like “wellness allowances” and “Twilio Recharge,” a paid sabbatical program. 

The company is also closing offices as it shifts into remote work after seeing “very low office utilization,” but also upping travel budgets “so you can see one another more often,” Lawson said.

Twilio joins tech companies such as shipping giant Amazon, Google parent company Alphabet, social media conglomerate Meta and music streaming app Spotify that have all cut staff in a string of recent layoffs sweeping Silicon Valley amid economic strain and uncertainty.