Precisely speaking, it’s only a few companies that announced laying off, but bad news always attracts more attention than the good ones.
After prominent legal tech player Reynen Court, announced in November that it was downsizing, as noted by TILT, two other US companies are going down the same path.
US-based legal tech firm DISCO recently told the country’s Securities and Exchange Commission (SEC) that it’s letting go of 9% of its workforce — some 62 people. The company cited cost reduction measures and its efforts to reach profitability as the key reasons for the move.
Founded in 2013 by practicing litigators, DISCO developed software that has evolved to become a comprehensive tool for users that include companies, law firms, educational institutions, and government departments. This software helps users be compliant with regulation, store and access knowledge, review documents using AI and optimize their operations. The company has been listed on the New York Stock Exchange (NYSE) since it went public in 2021.
US-headquartered SirionLabs has also made a similar move, announcing late last month that it’s laid off some 15% of its staff — or off 130 employees — in India, Europe and North America. The move comes just days after SirionLabs secured series D funding from US venture capital firm Sequoia Capital and US investment company Tiger Capital. Both sets of investors are said to have supported SirionLabs’ senior management in making this move, to cut costs and reach profitability, according to unnamed sources.
SirionLabs was founded in 2012 in India. Since its founding, it has opened local offices in seven countries, and serves customers in more than 70 countries across the globe with its contract lifecycle management software.
While downsizing is never desirable, in the cases of these two US companies, it appears to be a logical step towards profitability and a way of optimizing business operations. DISCO and SirionLabs both have a steady customer base, verified business models and investor support.