Inscribe.ai Reduces Workforce by Nearly Half Amidst Market Challenges and Industry Shifts
Layoff Announcement Affects Dozens of Employees at AI Fraud Detection Software Provider
The AI-driven fraud detection sector faces another blow as Inscribe.ai announces the dismissal of approximately 40% of its staff. This move impacts several teams including go-to-market and operational functions.
Background: Inscribe.ai, based in San Francisco, focuses on identifying fraud risks within various industries such as business underwriting, tenant screening, and onboarding. With around 60 employees prior to the announcement, the company primarily consisted of engineers, product designers, AI experts, marketers, sales personnel, and other professionals.
Reason Behind the Decision: Sources suggest that Inscribe.ai’s board initiated the reductions due to missed revenue targets stemming from challenging market conditions. Moreover, the advancements in AI technology in the financial services industry prompted the organization to shift directions and develop a new product.
CEO Perspective: Inscribe.ai CEO and co-founder, Ronan Burke, shared his viewpoint stating, “Our customers and Inscribe experienced significant changes in 2023. Many faced increased interest rates and uncertainty regarding consumer and business futures. Furthermore, recent advancements in AI represent vast potential for enhancing customer experiences, streamlining processes, and ensuring fair judgements across the financial services landscape.” He added, “As part of our strategic adjustment, we reduced our team size by nearly half in January 2024, focusing mainly on go-to-market and operational positions.”
Recent Funding: Notably, Inscribe.ai secured $25 million in Series B financing led by Threshold Ventures late in 2023, bringing their total fundraising amount to $38 million. Despite this investment, the company failed to meet its projected growth trajectory.
Future Plans: Looking ahead, Inscribe.ai plans to introduce a major product launch centered around its new product strategy. This upcoming release is expected to capitalize on the latest trends in AI technology and address the evolving needs of clients in the financial services sector.
