What's Going On With Twilio Stock Today?

Twilio Inc TWLO shares jumped more than 6% in premarket trading Monday before pulling back at the market open. The company announced plans to cut 17% of its workforce in a new email to employees.

What Happened: Twilio CEO Jeff Lawson sent an email to staff explaining that the company is switching its focus from growth to profitability. 

"For the last 15 years, we ran Twilio for growth, building a tremendous customer base, product set, and revenue base. But environments change – and so must we," Lawson said.

Twilio said it plans to prioritize profits more than ever before by spending less and becoming more efficient. 

"To do that, we’re forming two business units: Twilio Communications and Twilio Data & Applications. And today, I'm unfortunately bearing the news that we’re parting ways with approximately 17% of our team," Lawson said.

Twilio noted that its two different businesses are at different lifecycle stages and have different operating needs. The company's current approach is slowing progress toward its goals. The bulk of the workforce reduction will come from the company's communications business.

The news comes after the company trimmed its staff by close to 11% in September in an effort to reduce operating costs and increase margins.

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TWLO Price Action: Twilio has a 52-week high of $202.69 and a 52-week low of $41.

Twilio shares are up 3.11% at $61.94 at the time of writing, according to Benzinga Pro.

Photo: courtesy of Twilio.