The Prosus-owned startup Stack Overflow revealed Monday that 28% of its workforce had been let go.
The CEO of Stack Overflow, Prashanth Chandrasekar, stated in a blog post that the company is concentrating on its route to profitability. Although the post did not go into detail about the cause of the job layoffs, it did say that clients’ budgets were altering “due to the macroeconomic pressures.”
“This year we took many steps to spend less. Changes have been pursued through the lens of minimizing the impact on the lives of Stackers. Unfortunately, those changes were not enough and we have made the extremely difficult decision to reduce the company’s headcount by approximately 28%,” Chandrasekar said.
The number of laid-off employees was not made clear by the company. However, given that it increased its headcount to over 500 last year, it is likely to have an effect on more than 100 employees.
The company stated in August that because of generative AI, it anticipates “some rises and falls in traditional traffic and engagement over the coming months.”
Stack Overflow requested that AI businesses pay for training data earlier this year. It started prohibiting users in January from uploading AI-generated answers. Additionally, the business is working to improve its own AI skills. OverflowAI, which includes functions like generative AI-powered search, was introduced in July.
