Twilio plans to slash 11% of jobs as part of cost-cutting program

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Twilio Inc. TWLO, +5.50% said Wednesday that its board of directors has approved a restructuring plan that will see the company cut about 11% of its staff. The company, which makes software for customer communications, expects to take a $70 million to $90 million charge related to the restructuring plan and reflective of costs around severance, employee transition payments, vesting of stock compensation, and other areas. Of the projected charges, $55 million to $70 million “is expected to result in future cash outlays,” Twilio said in a filing with the Securities and Exchange Commission. Twilio added in the filing that it expects to incur a majority of the charges in its third quarter and that it anticipates the plan will be largely complete by the end of the fourth quarter. Shares are ahead 1.1% in Wednesday morning trading. The stock has lost 12.5% over the past three months as the S&P 500 SPX, +0.50% has risen 5.5%.

This article was originally published by Marketwatch.com. Read the original article here.

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