According to a report by Verge, CEO Prashanth Chandrasekar has confirmed that the company is “significantly reducing the size of our go-to-market organisation,” as well as “supporting teams” and other groups.
Stack Overflow didn’t detail the reasons or hasn’t mentioned the departments that will be affected by the layoff.
Earlier, in 2022, Stack Overflow doubled its employee base to over 500 people. The company said that 45% of these hires were for its go-to-market sales team. Chandrasekar also referred to his staff as “obviously the largest team.”
AI-generated coding may be the ‘problem’
The company’s hiring push started during the generative AI boom that helped in offering chatbots for different aspects of the tech industry, which includes coding. However, this can become a problem for a personal coding help forum. As developers get comfortable with AI coding assistance these tools get blended into the products they use.
Later on, the company encountered challenges stemming from AI-generated coding responses. To tackle this issue, Stack Overflow reportedly prohibited users from generating answers with the assistance of AI chatbots in December 2022.
However, the alleged enforcement of this policy triggered a prolonged strike among moderators, which was ultimately resolved in August. However, this ban is still in effect and Stack Overflow has disclosed its intention to impose charges on AI companies for using its platform for training purposes.
In May, UK telecom giant, BT is set to sack 55,000 jobs by the end of the decade to cut costs, BBC reported. The report also noted that a fifth of these cuts will be from the customer services department. These posts might get replaced by technologies like AI.