After DISCO, Are More COVID-19 Layoffs Ahead for E-Discovery?
As litigation and and other legal casework begins to slow, DISCO may not be the only e-discovery company to feel the impact.
April 03, 2020 at 03:20 PM
4 minute read
COVID-19 related layoffs have started trickling into the e-discovery industry. Last Friday, Austin Inno reported that DISCO had made cutbacks to its workforce. A DISCO spokesperson confirmed to Legaltech News that downsizing had occurred, but did not specify the number of layoffs made.
"Due to the coronavirus and the economic uncertainty facing the nation and the world, DISCO felt it was important to make difficult decisions and implement changes up front to proactively address and reduce potential risk," the spokesperson told LTN. "The decision to reduce our workforce was made solely to offset a potential downturn in business due to the coronavirus crisis. We remain confident in our business strategy and our plans for ongoing product and service innovation, customer acquisition and long-term growth. Business will continue as usual, and customers will see no disruption to service due to internal changes."
Prior to the outbreak of the virus, the company in January 2019 announced plans to expand the scope of its international footprint and tech offerings, bolstered by an $83 million funding round led by Toronto-based venture capital firm Georgian Partners. As part of the expansion, DISCO CEO Kiwi Camara told LTN that there was a plan in place to nearly triple the company's workforce. "Over the next two years there is a plan to go from just over 200 people to … 600 people, and the bulk of that expansion will be in the U.S.," Camara said
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