Categories: Technology
| On
2024-02-10 1:05 PM

Grammarly Announces Global Workforce Restructuring, 230 Employees Affected

  • Grammarly undergoes global workforce restructuring, affecting 230 employees, as it shifts focus towards the "AI-enabled workplace of the future."
  • CEO Rahul Roy-Chowdhury cites the need to align capabilities and skillsets, emphasizing the move isn't driven by financial concerns.
  • The restructuring reflects broader industry trends, with major tech companies like Google and Microsoft implementing similar measures recently.
By Lethabo Ntsoane

Grammarly, a prominent player in the AI-driven writing assistance industry, has revealed plans for a significant restructuring of its workforce, impacting 230 employees worldwide. The move comes as the company aims to pivot towards enhancing its focus on the “AI-enabled workplace of the future.”

Strategic Realignment Amid Technological Advancements

In a memo addressed to Grammarly employees, CEO Rahul Roy-Chowdhury explained the rationale behind the decision, citing the need to align the organization’s capabilities and skillsets with its strategic objectives. “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,” said Roy-Chowdhury.

The restructuring aims to facilitate improved collaboration and agility within the organization, requiring the redistribution of roles and the consolidation of certain teams. Notably, Roy-Chowdhury emphasized that the layoffs were not driven by financial concerns, reaffirming Grammarly’s strong financial position.

Support for Affected Employees

Grammarly has pledged to provide support for affected employees, ensuring they receive a minimum of three months’ base pay and health insurance benefits in accordance with their respective locations. The company’s commitment to mitigating the impact of the layoffs underscores its dedication to its workforce’s well-being during this transitional period.

Industry-Wide Trend

The announcement from Grammarly reflects a broader trend within the tech industry, with several major companies implementing workforce reductions in recent weeks. Among the notable names are Google, Microsoft, eBay, and others, signaling a period of adjustment and realignment amidst evolving market dynamics.

Future Outlook and Growth Strategy

Looking ahead, Roy-Chowdhury expressed optimism about Grammarly’s future prospects, highlighting the company’s belief in the transformative potential of AI technology. “We see massive opportunity as every individual and business begins to harness the power of AI,” he stated, underscoring Grammarly’s commitment to driving positive change in the workplace through innovation.

Financial Background

Grammarly’s decision to restructure its workforce follows its successful fundraising efforts in November 2021, where it secured $200 million in funding at a valuation of $13 billion. At the time, Roy-Chowdhury had indicated the company’s intention to utilize the funds to further enhance its AI technology capabilities.


As Grammarly embarks on this journey of strategic realignment, it remains steadfast in its commitment to innovation and excellence. The company’s proactive approach to adapting to evolving market demands underscores its resilience and determination to shape the future of the AI-driven workplace.

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Lethabo Ntsoane

Lethabo Ntsoane holds a Bachelors Degree in Accounting from the University of South Africa. He is a Financial Product commentator at Rateweb. He is an expect financial product analyst with years of experience in reviewing products and offering commentary. Lethabo majors in financial news, reviews and financial tips. He can be contacted: Email: Twitter: @NtsoaneLethabo