Grammarly has announced the layoff of 230 employees worldwide as part of a “business restructuring,” the company disclosed this week. The layoffs align with Grammarly’s strategic shift towards enhancing its focus on “the AI-enabled workplace of the future,” according to the company.
“In arriving at today’s decision, we evaluated our organizational structure and the current skill sets of our teams within the framework of our company strategy,” stated Grammarly CEO Rahul Roy-Chowdhury in a memo to employees. “As we strengthen our dedication to advancing the AI-enabled workplace and enhancing our technical investments in AI, we need a revised blend of capabilities and skill sets.” Additionally, we need to restructure our organization to enhance the quality and pace of collaboration — which involves, among other things, restructuring roles and co-locating certain teams.”
Roy-Chowdhury clarified that the layoffs are not a cost-saving measure, emphasizing that Grammarly’s financial standing is “strong.” The layoffs will impact most functions and geographic locations within Grammarly.
Affected employees will receive a minimum of three months’ base pay, along with applicable health insurance benefits based on their locations.
The memo highlights Grammarly’s growth from 200 to 1,000 employees over the past five years and acknowledges the changes in the industry and global landscape, including the conflict in Ukraine and the “new era of AI.” Roy-Chowdhury stated that these changes have prompted the company to adopt a more “strategic” approach.
“In terms of Grammarly’s future, we recognize significant opportunities as individuals and businesses alike begin to harness the power of AI,” added Roy-Chowdhury. “We will leverage this foundation to deliver even greater value to our customers. AI is poised to revolutionize the workplace for the better — and Grammarly aims to be at the forefront of driving that transformation.”
Grammarly joins a list of tech companies that have conducted layoffs in recent weeks. Notable tech firms such as Google, Microsoft, Snapchat, eBay, PayPal, DocuSign, Okta, Block, Discord, Twitch, and Duolingo have all implemented substantial layoffs within the past two weeks.
In November 2021, Grammarly secured $200 million in funding at a valuation of $13 billion. At that time, Roy-Chowdhury indicated to TechCrunch that the company intended to utilize the funding to further invest in its AI technology.
