Legal Tech Startup Disco Cuts Jobs Amid Coronavirus Fallout

By Xiumei Dong
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Law360 (March 30, 2020, 6:28 PM EDT) -- Austin, Texas-based legal tech startup CS Disco Inc., which makes the cloud-based e-discovery tool DISCO, confirmed Monday it has let go a chunk of its staff due to concerns over the economic impacts of the coronavirus pandemic.

The company has declined to comment other than providing a statement saying the layoffs were done "solely" to offset an anticipated downturn in business resulting from the coronavirus crisis.

"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," a Disco spokeswoman told Law360 in a statement Monday.

The spokeswoman declined to answer questions such as how many jobs or what positions were eliminated. According to a report published by Austin INNO, a local news site, sources reckoned around 75 people lost their jobs.

"We remain confident in our business strategy and our plans for ongoing product and service innovation, customer acquisition and long-term growth," the company's statement said. "Business will continue as usual, and customers will see no disruption to service due to internal changes."

The announcement makes Disco one of the first in the legal tech sector to publicly acknowledge job cuts as a result of the pandemic. On March 19, Disco CEO Kiwi Camara posted about COVID-19 on the company's website, outlining its "continuity plan" to assist clients' ongoing needs.

"As lawyers, we understand that the practice of law does not stop in the face of financial uncertainty and global emergencies," Camara wrote. "Given the recent guidelines from the CDC, we have taken the steps necessary to ensure our clients do not experience any changes in their DISCO experience while keeping our teammates safe."

The e-discovery company, which moved from Houston to Austin in 2018, has seen rapid growth since it was founded in 2012.

In January 2019, Disco landed an $83 million funding round led by Georgian Partners, a venture capital firm with expertise in applied artificial intelligence.

The company's LinkedIn page lists over 400 people as staff members. Besides its e-discovery tool that aids with processing, case assessment, managed review and production, Disco also sells deposition management software and other legal tech tools.

--Editing by Breda Lund.

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