cloudDevelopment ToolsStartups Replit Inc., a pioneer in generative artificial intelligence coding, announced that it will lay off 30 employees, accounting for approximately 20% of its total workforce.
Replit CEO Amjad Masad announced the news in an email sent to company employees and posted on X (formerly Twitter) today. Masad said in the email that the company "has decided to part ways with 30 outstanding colleagues." He emphasized that this was a difficult decision, but it was necessary to ensure that Replit can achieve its mission and achieve long-term success.
Replit has raised more than $200 million in funding, including a $100 million round in April 2023, whenLayoffsAt the time of the announcement, the startup had about 170 employees, according to PitchBook.
The startup is known for its browser-based integrated development environment, which provides developers with an alternative to traditional desktop applications. The advantage of browser IDEs is that it is easier for developers to get started, as there is little to no setup required before launching the platform, while using desktop-based IDEs can take hours to configure. With Replit, developers can simply navigate to the right URL and start coding immediately.
Replit has recently made a big push to integrate generative AI capabilities into its coding tools. Just last month, it launched a product called Replit Teams, similar to GitHub's well-known tool Copilot. It provides an AI agent that can work with developers in real time to make suggestions to fix coding errors or improve the efficiency of the code they write.
The company, which has more than 20 million users, is betting on the belief that artificial intelligence will change the way coding is done. It’s unclear whether Replit intends to replace its employees with AI, but the layoffs are still a reminder of the human cost of such innovation.
Masad said in an email to employees that the company intends to incorporate artificial intelligence into every aspect of its coding platform. He said Replit is not selling artificial intelligence but "selling a dream to make your dream software more accessible and to make programming more accessible."
The CEO did not disclose which departments or positions were affected, but insisted it was a difficult decision and that all employees being laid off would be supported in their transition. He also promised four months of severance pay and said he would waive the usual restriction period on employees' stock options so he could decide whether to sell them. He also said they would keep the company-provided laptops.
Replit's layoffs come amid a broader trend that has seen many tech companies cut staff in recent years. For example, Google, Meta Platforms Inc. Amazon and Replit competitor GitHub all laid off 10% employees last year.