© Reuters. FILE PHOTO: The logo of communication company Twilio is displayed at the Collision conference in Toronto, Ontario, Canada June 23, 2022. Picture taken June 23, 2022. REUTERS/Chris Helgren

(Reuters) – Activist investor Legion Partners has met Twilio (NYSE:) Inc officials several times, urging the cloud computing company to make changes to its board and consider divestitures, The Information reported on Tuesday.

Legion has held at least six meetings over the past few months and has discussed topics including improving cost structure, balance sheet and strategic alternatives, the report said, citing people familiar with the matter.

A spokesperson for Legion confirmed to Reuters that it has been in dialogue with Twilio, adding the hedge fund is hopeful that “significant action” will be taken.

Legion, known for its role in placing directors onto boards at Bed Bath & Beyond (OTC:) and Kohl’s (NYSE:), owns a stake of about $40 million in Twilio, as of March 31, according to a regulatory filing.

Twilio’s use of supervoting shares, which give Chief Executive Jeff Lawson a near 22% voting stake, is set to expire in less than a month, according to The Information report. Lawson owned 3.6% of the company’s stock, as of February.

After the expiration, all shares will combine to form one class, stripping Lawson of his voting stake and potentially opening up the company to more pressure from stockholders, the report said.

Shares in Twilio jumped about 5% after the report. The company declined to comment on Reuters’ request.

San Francisco-based Twilio has been grappling with a slowdown in demand for cloud services, with the company earlier this month projecting its second-quarter revenue below Wall Street estimates.

The company in February had said it was eliminating about 17% of its workforce and closing some offices to improve profitability.

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