The chatbot platform is making 78 workers redundant, primarily in marketing, sales and recruitment, CEO Mike Murchison said in an internal note on Tuesday, which he also posted on LinkedIn. The firm said it is offering laid-off employees—59 of whom are based in Canada—two-and-a-half months severance, extended benefits and outplacement services. (The Logic)

Talking point: Clients like Air Asia and Telus use Ada’s technology to build and manage chatbots to interact with consumers. While the firm’s AI is talking to shoppers, subscribers and fliers on behalf of prominent corporations, a “material percentage” of its business consists of “smaller, innovative, digital-first brands,” Murchison said in his note. Such firms are no longer signing up for Ada’s services at the same pace, as they face more difficulty accessing funding amid concerns about the economy. Ada itself raised US$130 million in a May 2021 Series C round. Murchison’s note said the layoffs put the company “in the position to remove our dependence on outside capital” while it focuses on selling to enterprise customers. In response to The Logic’s questions, he did not disclose whether Ada will be cash-flow positive following the cuts, but said it’s “in a strong financial position” and retaining customers. The firm is “continuing to hire mission critical roles,” he said; its site lists several open engineering positions.