Austin legal-technology company CS Disco Inc. disclosed this week in a federal filing that it is making a second round of layoffs this year.
It said May 9 it decided to lay off 47 employees, which is about 8% of its global workforce. It's also cutting 16 contractor positions.
The cost-cutting measures are meant to move the company toward profitability. Disco says it will spend up to $1.9 million to make the cuts, largely through severance packages and termination benefits.
Disco (NYSE: LAW), which went public in July 2021, is led by CEO Kiwi Camara. It uses artificial intelligence and other technologies to help law firms and other legal services providers with e-discovery, document review and case management.
In mid-January, the company announced it would lay off 62 employees, or about 9% of its staff at the time.
The layoff news came as part of the company's Q1 financial report, which showed the company generated about $33.1 million in revenue in the first three months of the year, down 4% from Q1 last year. Its net loss last quarter was $20.4 million, compared with a net loss of $11.8 million a year prior.
In April, Disco announced it was opening an office in Gurugram, India to expand its services and provide 24/7 professional support to customers globally. The company this year also unveiled a new AI chatbot for large-scale e-discovery. Unlike ChatGPT and several other AI products, Disco's bot is built to cite evidence from a user’s private documents.
Disco's cutbacks come amidst widespread tech layoffs. Layoffs.fyi, a site that has tracked global tech layoffs since the start of the pandemic, has logged 671 companies that have cut nearly 194,000 employees in 2023.
That means layoffs this year have already surpassed the nearly 165,000 cut by 1,056 companies in all of 2022, according to Layoffs.fyi.
