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Massive SAN FRANCISCO BAY AREA tech company Twilio lays off about 800 staffers

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Twilio founder and CEO Jeff Lawson, center, reacts after ringing the opening bell to celebrate Twilio's initial public offering, at the New York Stock Exchange, June 23, 2016, in New York City.

Twiliofounder and CEO Jeff Lawson, center, reacts after ringing the opening bell to celebrate Twilio’s initial public offering, at the brand new York STOCK MARKET, June 23, 2016, in NEW YORK.

Drew Angerer/Getty Images

Twilio, a corporate communications tech giant headquartered in SAN FRANCISCO BAY AREA, has let go 11% of its staff within a broader company restructuring a move which could eliminate a lot more than 800 employees.

The restructuring was approved by the companys board of directors Monday, in accordance with a SEC filing published Wednesday, as first reported by CNBC. Altogether, the business employed 7,867 people by December 2021. (A Twilio spokesperson declined to supply an ongoing employee headcount.)

In a letter made public by the filing to Twilio staff or Twilions, as CEO Jeff Lawson writes Lawson takes responsibility for the companys accelerated growth and, consequently, this layoff round. The tech industry has pulled back on its pandemic-era expansion amid larger economic headwinds and investor concerns, prompting layoffs and hiring freezes.

Twilio is continuing to grow at an astonishing rate in the last couple years, he writes in the letter. It had been too fast, and without enough concentrate on our most significant company priorities.

In August, Twilio released a third-quarter forecast that missed analyst estimates, causing its stock to plummet. Lawson, talking with CNBC, said that the business is headed toward profitability in 2023.

Laid-off employees will receive 12 weeks of severance pay, plus yet another week for each year worked at Twilio, Lawson says. Employees may also have the full value of Twilios next stock vest. And in a rare acknowledgment of its employees with work visas, Lawson said the business will undoubtedly be giving those associates a lot more support to hopefully minimize the disruption in their mind and their own families.

Twilio is really a cloud communications company, providing messaging systems for businesses like Lyft, Netflix and Airbnb.

The business estimates that the restructuring will definitely cost it between $70 million and $90 million.

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