Legaltech startup Darrow lays off one-third of workforce despite profitability

The affected roles included many legal analysts whose expertise was used to develop the company's AI platform. Darrow stated that the layoffs were due to artificial intelligence making certain positions redundant.

Darrow's platform uses AI to automate aspects of legal work, including case analysis and discovery. The laid-off analysts had contributed to training the AI system that now performs tasks they previously handled.

Darrow's layoffs reflect a broader trend in the legaltech and professional services sectors, where AI is increasingly automating knowledge-work roles. The company did not disclose the timeline of the layoffs or whether further cuts are expected.