Grammarly, the AI-based writing assistant, has announced it will lay off 230 staff members globally as part of its “business restructuring” strategy.
According to CEO Rahul Roy-Chowdhury, the move is not a cost-cutting measure but instead aims to refocus the company’s efforts towards creating an “AI-enabled workplace of the future.” The decision requires a different mix of skillsets and an organizational redesign to improve speed and quality of collaboration.
The job cuts will affect various Grammarly functions and locations. Affected employees will be provided with a minimum of three months’ base pay and applicable health insurance benefits.
Over the past five years, Grammarly’s team expanded from 200 to 1,000 employees. The company acknowledges industry changes, such as the global shift towards AI and the impacts of the war in Ukraine, that have required more strategic thinking.
Grammarly joins several other tech companies, including Google, Microsoft, Snapchat, eBay, PayPal, DocuSign, Okta, Block, Discord, Twitch, and Duolingo, in conducting substantial layoffs in recent weeks.
In November 2021, Grammarly secured $200 million in funding at a $13 billion valuation. The funds were slated for continued investments in AI technology, aligning with the company’s vision of leading the change towards an AI-driven workplace.
