Twilio Lays off 11% of Its Staff: The Drawbacks of Growing Too Fast


In September 2022, Twilio, a cloud-based communications company, announced that it would lay off 11% of its staff. The company was forced to take such measures after misjudging growth during the coronavirus pandemic and losing sight of its key priorities. Apart from threatening the job security of hundreds of Twilio staff, CEO Jeff Lawson’s efforts to restructure the company have come at a high price of USD 70–90 million. This case study explores the impact of growing too quickly in an unstable economy and taking uncalculated risks. Was scaling up at a rapid pace necessary for Twilio to achieve its full potential?

This case was prepared for inclusion in SAGE Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.

2023 Sage Publications, Inc. All Rights Reserved

You are not authorized to view Teaching Notes. Please contact your librarian for access or sign in to your existing instructor profile.
locked icon

Sign in to access this content

Get a 30 day FREE TRIAL

  • Watch videos from a variety of sources bringing classroom topics to life
  • Read modern, diverse business cases
  • Explore hundreds of books and reference titles