February 10, 2024
Grammarly has announced plans to cut 230 jobs as part of business restructuring
Grammarly has informed DOU that as part of a business restructuring, it is laying off about 230 members of its global team, or 21% of employees, 37 of them are Ukrainian specialists, which also makes up 21% of the local Ukrainian team.
The company's announcement states that the restructuring is not related to the need to optimize costs, Grammarly's business remains profitable and continues to grow.
Grammarly grew from a start-up created by Ukrainian founders to the world market leader that helps people at every stage of the writing process, from blank page to final draft.
From 2017 to 2021, the company held three rounds of attracting investments for a total of $400 million (the last round raised the total valuation of the company to $13 billion), but during the last period of time it faced a lot of competition from global IT giants, which were actively developing their language AI projects.
As for layoffs in the IT industry, they are already becoming a global trend, as the relatively low-skilled workforce can already be replaced by AI-based solutions.
As an example in its financial report for 2023, the company Meta (owner of the Facebook and Instagram networks) noted that the number of its employees as of December 31, 2023 was 67.3 thousand people, 22% less than a year ago.