If you write for a living, or you’re a student, Grammarly is probably one of your best friends online. Grammarly will help you find and correct grammatical and spelling mistakes and the paid version of the app and website will give you real-time writing suggestions to improve your report. For $12 a month, the paid version of Grammarly will even alert you to accidental plagiarism.
With many analysts talking about a future where generative AI bots replace human writers, it makes sense for Grammarly to use AI to help subscribers improve their writing skills. This week, Grammarly announced that it is laying off 230 employees to focus on “the AI-enabled workplace of the future,” according to the company. Grammarly said, “This decision supports Grammarly’s vision of bringing responsible AI writing assistance to people and workplaces everywhere. Millions of people and thousands of businesses use Grammarly to achieve more through better writing.”
In a memo to employees shared in a blog post, Grammarly CEO Rahul Roy-Chowdhury wrote, “As we strengthen our focus toward driving the AI-enabled workplace and deepen our technical investments in AI, we will need a different mix of capabilities and skillsets. We also need to redesign our organization to improve the quality and speed of collaboration — and that means, among other things, restructuring roles and co-locating certain teams.”
The executive made it clear that the layoffs were not a cost-cutting measure and said that Grammarly’s financial position remains “strong.” Instead, reducing the headcount is being done to get Grammarly prepared for the coming AI future. Those leaving the company will receive a minimum of 3 months’ base pay. That increases for team members who have been with the company longer. U.S.-based team members leaving the company will have an option to continue receiving their health insurance benefits for up to six months.
Grammarly is also helping those leaving the firm find a new position by offering “stipends or access to services for individualized career coaching, resume review, and other transition services.” The company will also create an “available talent” list that the public will be able to see. The list will include names, specialties, and “key results” that future employees can view. And those leaving Grammarly can keep their company-issued laptop for personal use.
Looking ahead, it’s easy to see that Grammarly is hanging its hat on AI. CEO Roy-Chowdhury wrote, “We see massive opportunity as every individual and business begins to harness the power of AI. For nearly 15 years, we’ve been building a product that helps millions of people every day, makes teams measurably more productive, and is already used by employees in 96% of the Fortune 500. We’ll 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 that change.”