Layoffs have hit legal tech once again.
E-discovery and legal software provider DISCO committed to laying off 62 employees, or about 9% of its global staff, according to a company Form 8-K filed with the SEC on January 19, 2023, as reported by the website layoffs.fyi. The filing stated:
“On January 19, 2023, the Company committed to a plan to reduce its workforce by approximately 62 employees, representing approximately 9% of the Company’s current global workforce (the “Plan”). The Plan was based on cost-reduction initiatives intended to reduce the Company’s cost structure and accelerate its path to profitability.
The Company estimates that it will incur non-recurring charges of approximately $0.9 million to $1.1 million in connection with the Plan, consisting of cash expenditures primarily for employee severance and other termination benefits.
The Company expects that the majority of these charges will be incurred in the first quarter of 2023.”