Grammarly Lays Off 230 Employees

Grammarly announced that it will lay off 230 employees as part of a business restructuring to advance its focus on responsible AI.

“As part of this restructuring, we’ve made the difficult decision to lay off approximately 230 members of our global team,” the announcement post explains. “We recognize the impact of this decision, particularly on those who will no longer be working with Grammarly. The company is committed to supporting them through this transition.”

Grammarly has been a leader in AI writing assistance for almost 15 years, and its tools are in use by over 70,000 business teams and 96 percent of the Fortune 500. According to CEO Rahul Roy-Chowdhury, the layoffs are not part of a cost-cutting exercise, as “Grammarly’s financial position remains strong.” Instead, the firm, which has quadrupled its employee count to over 1,000 in the past five years, is improving the quality and speed of collaboration by restructuring roles and co-locating certain teams.

Grammarly will support the departing employees with a minimum of three months of base pay and health insurance based on location; those in the U.S. will get at least 6 months of insurance. It will also pay for or provide various transition services, share a public-facing talent list with potential future employers, and allow departing employees to keep their Grammarly-issued laptops.

“We see massive opportunity as every individual and business begins to harness the power of AI,” Roy-Chowdhury says. “We’ve been building a product that helps millions of people every day, makes teams measurably more productive. 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.”