- Twilio plans to lay off about 1,500 employees, CEO Jeff Lawson announced on Monday.
- The company addressed the plans, and announced executive departures, during an all-hands meeting.
- Employees in an internal Slack message complained about a lack of trust and transparency.
Twilio held an all-hands meeting on Tuesday to discuss the company's plans to cut 1,500 workers and announced the departure of top executives, according to internal messages viewed by Insider.
Eyal Manor — the chief product officer to whom the company just agreed to give a $2.5 million cash bonus — is leaving the company, Twilio leaders announced in the all-hands. A recent securities filing said Manor was to be paid the huge bonus, subject to his "continued employment by the Company through February 24, 2023." The bonus was not addressed on the call, despite questions from employees.
Manor decided to leave to become an executive-in-residence at venture capital firm Norwest Venture Partners, according to a person familiar with the change.
Lybra Clemons — the company's first chief diversity, inclusion, and belonging officer, hired in 2020 — is also leaving, Twilio announced during the all-hands.
Meanwhile, employees took to an internal Slack channel intended for questions during the all-hands to call out leaders on what they said was a lack of trust and transparency, according to screenshots viewed by Insider.
"Trust is nonexistent at this point. Communication is poor. We're a no-shenanigans company and this is compete and utter shenanigans," one employee said. "We were told that layoffs wouldn't be as sudden or jarring if needed in the future. But that was a blatant lie."
The plan to cut 17% of workers follows another significant Twilio layoff in September when the company cut 11% of workers.
"Trust is broken again and again. You've said the same song and dance the last time. What's different this time," one employee asked. "This is the same message as last time. At what point are you going to provide us with results that allow us to actually trust you," another said.
Twilio created two new business units
Amid the layoffs, the company reorganized to create two new business units: Twilio Data & Applications, led by Elena Donio, and Twilio Communications, led by Khozema Shipchandler. Both will include sales, research and development, and operational resources, according to an email viewed by Insider.
The No. 1 "upvoted" question during the all-hands among employees was: "With the forming of two business units, is this a decision that was made with a view to spinning off/selling one of these business units in the near future?"
Twilio's business boomed during the pandemic when demand for its communication services soared, and it hired thousands of new staff. The stock jumped, making Lawson a billionaire on paper.
Now that COVID-19 restrictions are looser, Twilio's fortunes have dimmed and investors are pressing the company to cut expenses and become profitable. The shares have plunged from over $400 to about $60 now. In September, Twilio announced layoffs of 11% of its workforce.
"With shift to quarterly cadence, 2 huge layoffs, & reorg, can't help but get a feeling of 'making it up as we go.' How can we trust a plan that keeps changing?" one employee wrote.
Do you work at Twilio or have insight to share? Contact the reporter Ashley Stewart using a nonwork device via the encrypted messaging app Signal (+1-425-344-8242) or email (astewart@businessinsider.com).
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