Software provider Twilio has announced plans to lay off approximately 5% of its workforce, with around 300 employees affected. The company cited underachievement in the growth of a unit that activist investors have targeted as the reason for the layoffs.
Twilio expects to incur restructuring charges between $25 million and $35 million. The cuts will primarily impact Twilio’s Data and Applications unit, which Legion Partners and Anson Funds are urging CEO Jeff Lawson to divest. This marks the company’s third round of layoffs in just over a year. Twilio intends to streamline its offerings and sunset its Programmable Video product as part of this restructuring plan.