Shares of customer engagement platform provider Twilio (NYSE:TWLO) are under pressure today after the company disclosed a workforce restructuring plan aimed at streamlining its operations.
Consequently, Twilio will eliminate nearly 5% of its workforce. This move is expected to result in charges to the tune of $25 million to $35 million for the company. A substantial chunk of the charges associated with the restructuring are expected to be incurred in the fourth quarter.
Separately, Twilio reaffirmed its financial outlook for the fourth quarter and fiscal year ending December 31, 2023. Last month, the company announced stellar third-quarter results and raised its financial outlook.
Amid the present business environment, Twilio is maintaining a focus on streamlining its operations. This year, it has announced multiple layoffs and shuttered its IoT and ValueFirst businesses. Last week, activist investor Anson Fund asked Twilio to either sell its business or divest its data and applications business. Anson has accumulated a nearly $50 million stake in Twilio.
What is the Target Price for TWLO Stock?
Overall, the Street has a Hold consensus rating on Twilio, and the average TWLO price target of $69.29 implies a modest 5% potential upside in the stock. That’s after a nearly 23% surge in the company’s share price over the past month.
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