Web browser startup, Brave has announced that they will be cutting off 27 employees across various departments. According to TechCrunch, the company did not provide specifics about the remaining workforce or the reasons behind the decision. PitchBook estimates that Brave's total staff count was around 191, meaning the company has reduced its workforce by approximately 14%.
This layoff comes less than a year after Brave had laid off 9% of its employees in October 2023, according to another TechCrunch report. At that time, the company attributed the cuts to "cost management in this challenging economic environment."
However, this new round of layoffs raises eyebrows about the possible impact of Brave's recent ventures into artificial intelligence (AI) on its financial stability.
Brave has been actively integrating AI into its offerings, including the recent launch of its AI assistant, Leo.
The AI assistant has been rolled out across multiple platforms, including desktop, Android, iPad, and iPhone. In June, Brave introduced Leo's integration with its search results, allowing users to interact with the chatbot for various tasks, such as checking sports scores or gaining additional context about articles.
Despite this new AI venture, Brave has not disclosed the financial implications of developing and maintaining these AI features. The company's failure to provide details on the costs associated with its AI projects leaves uncertainty about whether these expenses are related to the recent layoffs. Unfortunately for the web browser startup, the full impact of AI in their operations remains to be unseen.
The company has yet to clarify why the 27 employees were laid off.
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