- Grammarly laid off 230 employees to refocus efforts on AI in the workplace.
- The cuts aim to restructure teams to better collaborate on AI initiatives.
- Despite robust funding, the CEO cited needing to be more strategic amid crises.
Grammarly cuts 230 Jobs
Grammarly laid off 230 employees this week, just over 20% of its staff, as the writing assistance platform makes major changes to redirect efforts toward AI in the workplace.
CEO Rahul Roy-Chowdhury described the cuts as part of a “business restructuring” rather than a cost-saving measure.
In a memo, Roy-Chowdhury explained the company sought to reorient its talent mix and structure for more effective collaboration on AI-related initiatives.
CEO shifts focus to AI
This drove assessments of current team capabilities versus Grammarly’s revised strategy. The layoffs impact most business functions globally.
Despite robust funding – including a $200 million round last year valuing Grammarly at $13 billion – Roy-Chowdhury cited industry evolution and global crises as reasons to “be more strategic” in Grammarly’s focus.
Layoffs for strategic change
The company aims to leverage AI to transform and empower workplace communication fundamentally.
Affected employees will receive separation packages and health coverage continuance.
Grammarly joins technology giants like Google, Microsoft, and Snap in recently cutting workforces.
However, Roy-Chowdhury remains bullish on Grammarly’s future as a leader in an AI-enabled workplace revolution.
