Twilio To Cut 11% of Staff After Growing 'Too Fast'

Twilio, a maker of customer communication and marketing software, said it will cut about 11% of jobs and restructure the company in a push for profitability after a period of rapid expansion. From a report: Sales strategy, research, and administrative staff will be most affected by the workforce reductions, Chief Executive Officer Jeff Lawson wrote in a letter to employees Wednesday. The shares rose 0.5% in New York. "Twilio has grown at an astonishing rate over the past couple years. It was too fast," Lawson wrote. "At our scale, being profitable will make us stronger." San Francisco-based Twilio, best known for its direct-to-consumer text messaging services, is betting on an expansion into the wider market for customer service tools in a bid to compete more forcefully with Salesforce and Adobe. Recent acquisitions have included identity verifier Boku Identity, toll-free messaging service Zipwhip and customer data provider Segment. Its workforce has jumped over the past year, growing to 8,510 employees at the end of June from 6,334 employees a year earlier.

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