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Replit cuts staff by 30 amid aggressive AI push in software development

May 17, 2024 - venturebeat.com
Replit, a cloud-based software development platform, has laid off 30 employees as it shifts its focus towards artificial intelligence (AI). CEO Amjad Masad announced the layoffs in an email to staff, stating that the decision was necessary for the long-term success of the company. The company, which has raised over $120 million and has 20 million users, is betting on AI to transform the way code is written.

Masad outlined a plan to integrate AI into every aspect of Replit’s platform, with a focus on an AI-powered code completion tool called Ghostwriter, now rebranded as “Replit AI”. Despite this ambitious plan, the company is reducing its workforce, with the layoffs representing a significant portion of its estimated 180 employees. The move reflects a broader trend in the tech industry, with startups tightening their belts due to economic uncertainty and the high costs of developing AI systems.

Key takeaways:

  • Replit, a cloud-based platform for software development, has laid off 30 employees as it pivots towards artificial intelligence to power its coding tools.
  • The company's CEO, Amjad Masad, outlined a plan to infuse AI into every aspect of Replit’s coding platform, including an AI-powered code completion tool called Ghostwriter.
  • The layoffs represent a significant portion of Replit’s staff, which is estimated to be around 180 employees.
  • This move reflects a wider trend in the tech industry, where even well-funded startups are tightening their belts in response to economic uncertainty and the high costs of developing AI systems.
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