Cohere fires 20 employees after successful $500M funding round

What’s happening at Cohere?

This past Tuesday, artificial intelligence startup Cohere cut approximately 20 employees. These positions were part of a larger workforce of 400 individuals. According to CNBC, this layoff at the Canada-based company comes despite the recent completion of a $500 million funding round from investors including AMD, Salesforce, Oracle, and Nvidia who have valued Cohere at $5.5 billion.

Official statements and context

A representative of Cohere told CNBC “With our most recent round of financing in place, we have a clear vision for the future of Cohere, which has required some internal realignment.”

• “We will continue to aggressively hire people as we work to offer companies the most accurate, secure and private multilingual AI solutions in the market.”
• Despite the recent layoffs, Cohere is hiring in areas such as customer operations, partnerships, revenue, sales, product design and modeling, according to its website.
• Many of Coherer’s competitors offer AI products for both businesses and consumers, however, Cohere has decided to focus to focus on g products solely for businesses
• In a statement given to CNBC this past March, Cohere president and chief operating officer Martin Kon told CNBC that by staying focused on enterprise AI, the company can run efficiently and keep costs under control even amid a chip shortage, rising costs for graphics processing units (GPUs) and ever-changing licensing fees for AI models.

Layoffs in Canada

It remains unclear exactly how many Cohere employees in Canada will lose their job as a result of this layoff.

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