Grammarly lays off 230 employees in ‘corporate restructuring’

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Grammarly lays off 230 employees worldwide in ‘business restructuring’ announcement this week. The layoffs are part of Grammarly’s efforts to focus more on “the AI-powered workplace of the future,” the company says.

“To arrive at today’s decision, we looked at our organizational design and the current skills of our teams through the lens of our business strategy,” Grammarly CEO Rahul Roy-Chowdhury said in a note to employees. “As we become more focused on creating an AI-enabled workplace and deepen our technical investments in AI, we will need a different mix of capabilities and skills. We also need to rethink our organization to improve the quality and speed of collaboration, which means, among other things, restructuring roles and regrouping certain teams.

Roy-Chowdhury went on to argue that the layoffs were not a cost-cutting measure, emphasizing that Grammarly’s financial position was “strong.” He says the layoffs affect most Grammarly functions and geographies.

Affected employees will receive a minimum of three months of base salary, as well as health insurance benefits applicable to their location.

The memo states that Grammarly has grown its team from 200 to 1,000 employees over the past five years and that during that time the company has witnessed changes in the industry and global environment, notably the war in Ukraine and a “new era of AI”. Roy-Chowdhury says these changes have pushed the company to be more “strategic”.

“As for the future of Grammarly: We see huge opportunities as every individual and business begins to harness the power of AI,” Roy-Chowdhury said. “We will build on this foundation to bring even more value to our customers. AI will fundamentally change the workplace for the better, and Grammarly will play a leading role in driving this change.

Grammarly is one of several tech companies to make layoffs in the past month. Many technology companies, including Google, Microsoft, Snapchat, eBay, PayPal, DocuSign, Okta, Block, Discord, Tic And Duolingo have all made significant layoffs in just the last two weeks.

In November 2021, Grammarly raised $200 million in financing for a valuation of $13 billion. At the time, Roy-Chowdhury told TechCrunch that the company planned to use the funding to continue investing in its AI technology.

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