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Twilio to Lay Off 11 percent of its Workforce


Twilio Inc. (NYSE:TWLO) announced yesterday that it will lay off 11% of its workforce, representing the largest layoff in enterprise software year-to-date.
Analysts at RBC Capital believe this could be a warning sign of future layoffs to come elsewhere in software, particularly those that (1) benefited + invested heavily from the COVID boom resulting in similar levels of “bloat” seen in Twilio; and (2) are more macro- sensitive.
While the analysts appreciate the clearer visibility to 2023 profitability, they noted they came away incrementally negative on future growth prospects (and over 30% growth through 2024 now looks off the table).
Net-net, the analysts are more positive on the company following the announcement but believe share performance is under-discounting the read-throughs to near-term growth.










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