Textio, a Seattle-based augmented writing startup specializing in AI-powered solutions for bias-free workplace communication, recently announced a restructuring resulting in the layoff of 15 employees. This latest workforce reduction follows two previous rounds of layoffs: one in March 2024 affecting 14 employees and another in 2023 impacting 15 employees. While the exact current employee count remains undisclosed, it’s estimated to be below 70, considering the cumulative impact of these reductions. These actions reflect the company’s ongoing efforts to adapt to evolving market demands and prioritize its most promising growth areas.
Founded in 2014, Textio leverages artificial intelligence and machine learning to analyze and refine written communication, helping organizations mitigate bias in hiring processes, performance reviews, and other critical workplace interactions. Its customer base boasts prominent names such as Bloomberg, Cisco, Hulu, Oracle, Spotify, and Warner Music Group, highlighting the company’s appeal to large organizations seeking to cultivate more inclusive and equitable work environments. The company’s technology aims to identify and flag potentially biased language, offering alternative phrasing and promoting more objective and inclusive communication practices.
The recent restructuring is attributed to Textio’s strategic shift towards its Feedback product, a tool designed to enhance performance management and coaching within organizations. This strategic refocusing necessitates a realignment of resources, including adjustments to the company’s workforce composition. The increasing demand for effective coaching and performance management tools within the modern workplace has prompted Textio to invest in bolstering its capabilities in this specific area. This includes hiring for new roles in sales and product marketing to support the growth and expansion of the Feedback product line.
Textio’s decision to prioritize its Feedback product reflects a broader trend within organizations towards emphasizing employee development and performance improvement. As companies increasingly recognize the value of regular feedback and coaching, the demand for tools that facilitate these processes has grown significantly. Textio aims to capitalize on this trend by enhancing its Feedback product and positioning itself as a leading provider of solutions in this burgeoning market. This strategic move necessitates a shift in resources and expertise, leading to the restructuring and realignment of the workforce.
Despite the recent layoffs, Textio remains committed to its core mission of promoting inclusive communication within the workplace. The company’s focus on the Feedback product signifies a strategic adaptation to meet evolving customer needs and capitalize on market opportunities in the performance management space. By streamlining its operations and investing in areas with high growth potential, Textio aims to maintain its competitive edge and deliver innovative solutions that address the challenges of modern workplace communication. The company’s ongoing investment in product development and sales expansion underscores its commitment to long-term growth and sustainability.
Looking ahead, Textio plans to continue investing in its Feedback product, expanding its sales and marketing efforts, and developing new features and functionalities to meet the evolving needs of its customers. The company’s commitment to innovation and its focus on addressing critical workplace challenges position it for continued growth in the rapidly evolving landscape of augmented writing and communication solutions. While the recent restructuring involved difficult decisions, Textio remains optimistic about its future and its ability to deliver value to its customers and stakeholders. The leadership transition earlier this year, with Jensen Harris, co-founder and former chief experience officer, taking over as CEO from Kieran Snyder, further underscores the company’s commitment to adapting and evolving in the dynamic tech landscape. The company has raised a total of $42.5 million in funding, demonstrating investor confidence in its long-term potential and its ability to navigate the challenges and opportunities of the market.
