Austin-based legal tech startup DISCO has cut its workforce in preparation for an economic downturn, the company confirmed Friday.
The company, which was one of the fastest-growing local tech startups in the past couple years, didn't immediately respond to questions about how many jobs were eliminated or questions about what positions were eliminated or whether founders and managers are taking pay cuts or other measures to reduce the impact of layoffs.
"Due to the coronavirus and the economic uncertainty facing the nation and the world, DISCO felt it was important to make difficult decisions and implement changes up front to proactively address and reduce potential risk," the company said in a prepared statement. "The decision to reduce our workforce was made solely to offset a potential downturn in business due to the coronavirus crisis."
A source told Inno the company cut about 75 jobs.
DISCO, which moved from Houston to Austin in 2018, has raised a total of $135 million since its founding in 2012. That includes an $83 million round in January last year led by Toronto-based Georgian Partners. Prior investors include Bessmer Venture Partners, LiveOak Venture Partners, The Stephens Group and venture debt firm Comerica.
DISCO’s AI-powered software provides e-discovery services for law firms. It automates often complex and specialized tasks for law firms and helps with workflow. Its AI monitors how legal teams code documents and helps organize files.
"We remain confident in our business strategy and our plans for ongoing product and service innovation, customer acquisition and long-term growth," the company's statement said. "Business will continue as usual, and customers will see no disruption to service due to internal changes."
