Twilio Inc said on Wednesday it plans to cut its staff by nearly 11% as the cloud communications platform seeks to reduce costs and shore up margins.
Twilio shares rose 1.33% in morning trading.
The company estimates it will incur between $70 million and $90 million in charges over its restructuring plan which includes staff layoffs, with the majority to be incurred in the third quarter of 2022.
Twilio, which in August forecast a bigger-than-expected adjusted loss for its third quarter, hired aggressively during the pandemic with employee count rising to 7,867 by end 2021 from 4,629 as of Dec. 31, 2020
Twilio faced a cyber attack last month that compromised data of about 163 customers. The company, which has notified the affected people, has not disclosed any financial impact of the breach.