Why Twilio Stock Is Up Today
Twilio (NYSE: TWLO) is cutting about 17% of its workforce, its second round of layoffs since September, as part of a broader restructuring of the cloud communications software maker. It is a tough day for Twilio workers, but investors appear to believe the changes were necessary, sending Twilio shares up as much as 7% on Monday trading.
After years of growth, big tech has been focused on cuts of late, with a range of companies including Amazon, Alphabet, and Microsoft announcing layoffs in recent weeks. Rising rates have changed the calculus on a "growth at all costs" strategy, and a range of one-time fast growers are seeking to pare back operations to adjust to the new operating environment.
On Monday, Twilio announced an overhaul that includes about 1,500 job cuts as well as the formation of two business units in an effort to "strategically realign the business to promote efficient and accelerated growth." The company will permanently close office locations and is eliminating certain perks, including its book and wellness allowances.
Source Fool.com
