Cloud communication service Bird has cut 120 jobs, roughly one-third of its total workforce, in a move to realign its global operations amid the ongoing AI boom, TechCrunch has exclusively learned. The Amsterdam-based firm, formerly known as MessageBird, confirmed the news, stating that most of the affected roles were in Europe.

The layoffs come just a year after Bird cut 90 employees, following its rebrand. At the time, the company also slashed prices to take on competitors like Twilio, Klaviyo, and Attentive. Bird offers a CRM (customer relationship management) platform for marketing, sales, and payments via email, SMS, and WhatsApp, and counts Meta, PayPal, Square, and Uber as its key customers.

According to Bird founder and CEO Robert Vis, the layoffs are not a cost-reduction exercise, as the startup's financials remain strong. Instead, the company is shifting its focus to better serve its customers in their local time zones and cultural contexts. "While Bird was founded in Amsterdam and built strong European roots, our customer footprint has grown significantly in the Americas and Asia," Vis said in a statement. "This realignment will position our teams closer to our customers, enabling us to better serve them."

The move is seen as a strategic response to the growing adoption of AI in the industry. Bird is not the only company to be impacted, with similar layoffs reported at Sprinklr, Workday, and Okta. As AI technology continues to advance, many companies are reassessing their operations to stay competitive.

Vis emphasized that the changes will help Bird return to its agile, focused model that drove its early success. The company has a strong track record, having raised $800 million in a Series C extension in 2021, following a $240 million round that valued the startup at $3 billion. Bird also acquired email marketing platform SparkPost in 2021 for $600 million.

Although the layoffs are significant, Bird has committed to providing "comprehensive transition support" to the affected employees, although specifics on the severance package were not disclosed. The company's decision to realign its operations is seen as a proactive move to stay ahead of the curve in the rapidly evolving AI landscape.

The news has significant implications for the tech industry, as companies increasingly turn to AI to streamline their operations and improve customer service. As AI adoption continues to accelerate, it will be interesting to see how other companies respond to the changing landscape. For now, Bird's move is a clear indication that the AI boom is driving significant changes in the way businesses operate.