Key Takeaways:
– Textio announces 16% workforce reduction in a restructuring bid.
– The AI firm shifts resources to focus more on their product Textio Lift.
– Kieran Snyder stepped down as Textio CEO earlier this year.
– More than 50,000 tech employees have been laid off this year according to Layoffs.fyi data.
– Textio has previously secured $42.5 million funding from various investors.
In a bid to realign its resources to the areas of substantial growth, artificial intelligence company Textio confirmed the layoff of 14 employees which equates to 16% of its workforce. A statement from a company spokesperson on Thursday revealed that the company has undertaken the restructuring to reposition its skills and resources towards sectors with significant product growth.
Adapting to Market Dynamics
Founded in 2014, Textio banks on advanced technology like artificial intelligence and machine learning to aid in the removal of bias from workplace conversations. Employing 71 people after the layoffs, Textio has an impressive clientele that includes heavyweights such as Bloomberg, Hulu, Spotify, and Oracle.
However, the company is not alien to layoffs. It was just last year that Textio had a previous round of job cuts. It is worth noting that, according to Layoffs.fyi, more than 200 tech companies have laid off over 50k employees in the running year alone.
A Shift in Priorities
Following the restructuring, Textio’s focus will lean more towards Textio Lift, a tool designed to help managers deliver unbiased feedback while providing vital reports to the leadership. This product, released last year, is where the company is experiencing the most growth, hence the strategic shift towards it.
This sideways move not only speaks volumes about Textio’s capacity to adapt to market changes but also manifests its commitment towards maintaining the growth momentum of its most successful products.
Changes at the Helm
Right on the heels of the layoffs, Textio bid farewell to its CEO and co-founder, Kieran Snyder, who stepped down from her role in January. Her husband and co-founder, Jensen Harris, formerly the Chief Experience Officer, replaced her. Even though she stepped aside from her executive role, Snyder remains on the board and has taken on the position of Chief Scientist Emeritus.
Funding and Future Prospects
Backing up its operations, Textio has raised an admirable $42.5 million from a collaborative pool of investors which include respectable names such as Industry Ventures, Operator Collective, Scale Venture Partners, and Bloomberg Beta.
The funds, together with the strategic restructuring, position Textio in a way that will enable it to focus more on their products and course through this challenging phase while supporting continued growth. Despite the recent layoffs, the company’s commitment to providing services that remove bias from workplace communications remains steadfast.
Final Thoughts
Changes like these are testament to Textio’s ability to adapt in an ever-changing tech landscape. With a renewed focus on their flagship product, bolstered by a fresh structure on leadership and workforce, the team looks poised to navigate the challenges ahead, while ensuring sustained growth and value delivery to its customers.
