Cloud Communication Service Bird Cuts 120 Jobs Amid Rebrand and Ongoing AI Boom
The Amsterdam-based firm, formerly known as MessageBird, has reduced its global workforce by one-third, as confirmed by the company. This move is part of an effort to realign its operations in the face of the growing AI market.
Why the Layoffs?
The news comes just a year after Bird cut 90 employees, rebranding itself and slashing prices to take on competitors like Twilio, Klaviyo, and Attentive. The company aims to offer a unified platform for businesses to communicate with their customers through various channels, including email, SMS, WhatsApp, and voice. Bird’s CRM (customer relationship management) platform is used by prominent clients, including Meta, PayPal, Square, and Uber.
Behind the Decision
Bird took a comprehensive approach to the decision, affirming that the layoffs are not solely due to financial constraints. Instead, the AI adoption is the primary reason for the reduction in roles, according to Robert Vis, the founder and CEO. Despite the downsizing, Vis stated that Bird’s financial situation remains strong.
Partnerships and Acquisitions
Bird has a significant presence in the European market, but it has expanded its reach in the Americas and Asia. This expansion has required modifications to the company’s operations. Vis cited the realignment as an opportunity to refine its focus and better serve customers in their local time zones and cultural contexts.
Industry Trends
The decision is part of a broader trend among technology companies in the AI boom. Other notable companies, including Sprinklr, Workday, and Okta, have also experienced staff reductions in recent months. The layoffs signify the increasing challenge companies are facing in maintaining workforce flexibility amidst the AI-driven market.
Perspective from Key Stakeholders
Vis emphasized that the changes will enable Bird to regain its agility and momentum, which contributed to its initial success, from SMS to becoming a leading provider of business communication solutions. The affected employees will receive comprehensive transition support, although specifics about the severance packages were not disclosed.
Bird has a history of significant investments, including raising $800 million in a Series C extension in 2021 and acquiring email marketing platform SparkPost for $600 million in the same year.
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