Grammarly is a very well-known writing assistance software. According to data disclosed by it, the tool is used by more than 70,000 business teams and 96% of the Fortune 500 companies. The other two companies that are also very well-known in their own fields are the translation service DeepL and the language learning software Duolingo. For DeepL, ChatGPT is a strong competitor. For Duolingo, AI can assist in course design, so Duolingo can lay off employees.
Grammarly seems to have encountered a similar problem. This week Grammarly announced that it would lay off 230 people, accounting for less than a quarter of its employees.
Regarding the layoffs, the company claimed that it was not because of obstacles to business growth or the need to cut costs, but because Grammarly believed that the number of personnel was currently excessive. Through layoffs, Grammarly would reorganize part of the team to improve efficiency.
However, no one would believe this explanation. You can believe that Grammarly's business growth is still very good, but Grammarly is also one of the tools that has been hit hardest by ChatGPT. Obviously the administrators have the awareness of being prepared for danger in times of peace. Even if the business is really good now, they still have to lay off employees to deal with certain emergencies.
In terms of layoffs, Grammarly will provide employees with at least three months' salary as compensation and insurance. If employees are in the United States, they can get six months of insurance. Grammarly will also provide some transition financial support.
Finally, Grammarly employees will receive company-issued laptops that they can take away.