Grammarly Implements Business Restructuring, Resulting in Layoffs for 230 Employees

Grammarly Announces Strategic Workforce Changes: 230 Employees Affected.

Grammarly has disclosed its decision to reduce its global workforce by 230 employees as part of what it terms a “business restructuring” initiative, the company declared this week. This move aligns with Grammarly’s vision to propel forward into “the AI-enabled workplace of the future,” according to the company’s statement.

Photo Credit: Grammarly

CEO Rahul Roy-Chowdhury conveyed in a memo to staff, “In arriving at today’s resolution, we assessed our organizational structure and the current skill sets within our teams in light of our corporate strategy. As we intensify our focus on advancing the AI-enabled workplace and deepen our technical investments in AI, we require a different amalgam of capabilities and skill sets. Additionally, we need to reconfigure our organization to enhance the quality and efficiency of collaboration; this entails, among other actions, restructuring roles and consolidating certain teams.”

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Roy-Chowdhury underscored that the layoffs do not serve as a cost-cutting maneuver, emphasizing the “strong” financial standing of Grammarly. He noted that the layoffs would impact most functions and geographical areas within Grammarly.

Affected employees will receive a minimum of three months’ base pay, coupled with health insurance benefits applicable to their respective locations.

The memo highlights Grammarly’s expansion from a team of 200 to 1,000 employees over the past five years. During this period, the company encountered shifts in the industry and global landscape, including the conflict in Ukraine and the advent of a “new era of AI.” Roy-Chowdhury articulated that these changes have necessitated a more “strategic” approach from the company.

Regarding Grammarly’s future trajectory, Roy-Chowdhury expressed optimism, stating, “We recognize significant opportunities as individuals and businesses increasingly harness the power of AI. We will leverage this foundation to deliver even greater value to our customers. AI stands to revolutionize the workplace for the better, and Grammarly is poised to lead this transformative journey.”

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Grammarly joins a roster of tech companies that have implemented workforce reductions in recent weeks. Noteworthy names such as Google, Microsoft, Snapchat, eBay, PayPal, DocuSign, Okta, Block, Discord, Twitch, and Duolingo have all undergone substantial layoffs in the past fortnight alone.

In November 2021, Grammarly secured $200 million in funding at a valuation of $13 billion. At that juncture, Roy-Chowdhury informed TechCrunch of the company’s intentions to allocate the funding towards further enhancements in its AI technology.

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