In a recent federal filing, Austin-based legal-technology firm CS Disco Inc. announced that it will be making a second wave of layoffs in this year.
It announced on May 9 that it had decided to layoff 47 employees. This is approximately 8% of the global workforce. It also cuts 16 contractor jobs.
Cost-cutting is intended to bring the company closer to profitability. Disco will spend $1.9 million on the cost-cutting measures, mostly through termination and severance benefits.
Kiwi Camara is the CEO of Disco (NYSE LAW), a company that went public in July 2020. It uses artificial intelligent and other technologies to assist law firms and legal service providers with eDiscovery, document reviews and case management.
The company announced mid-January that it would be laying off 62 workers, which was about 9% at the time.
The company announced the layoffs as part of its Q1 financial report. This showed that the company had generated $33.1 million of revenue in the first quarter of the year. This was down 4% compared to Q1 last. The company's net loss for the last quarter was $20 million, down from $11.8 million in Q1 of 2013.
Disco announced in April that it would be opening an office at Gurugram, India, to expand its service and offer 24/7 professional support for customers worldwide. This year, the company also launched a new AI-powered chatbot to help with large-scale eDiscovery. Disco's AI bot, unlike ChatGPT or other AI products is designed to cite evidence found in a user’s private documents.
Disco's cuts come amid widespread layoffs in the tech industry. Layoffs.fyi is a website that tracks global tech layoffs. Since the pandemic began, 671 companies have reduced nearly 194,000 workers in 2023.