Transcription software maker Rev.com, which has dual headquarters in Austin and San Francisco, is laying off dozens of Austin-area employees.

The company, which makes speech to text and transcription products, detailed the planned job cuts in a WARN letter sent to the Texas Workforce Commission on Oct. 7. A WARN letter, which stands for Worker Adjustment and Retraining Notification Act, is a federally mandated notice employers must provide to state governments in the event of major layoffs.

The layoffs are expected to take place on Oct. 21, according to the letter. Rev.com said it had "an unforeseeable business circumstance" after the company's lender reduced its ability to borrow funds needed to operate, forcing it to cut costs immediately. The letter said all affected employees have been notified.

In a written statement, CEO Jason Chicola said Rev grew too fast, and the layoffs would make it possible fo the company to better weather the market.

“In Rev’s pursuit to meet a growing market demand, we grew too fast, and we regret the impact this had on our people. This reorganization of our business will allow us to become profitable and avoid reliance on outside capital in a changing economic environment," Chicola said. "We are confident in Rev’s future as the leader in accuracy and accessibility within the world of speech to text, and want to thank the employees who helped shape Rev into what it is today."

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Rev declined to disclose how many Austin-based employees it would have following the reduction, or if other offices would be affected. As of late 2021, the company had 155 employees in Austin. Globally, the company has more than 300 employees, according to its website. It also uses more than 72,000 freelancers to help transcribe content for its customers.

Last year, as Rev was looking to scale up its Austin office, Chicola said the company has been able to grow and attract employees because it embraces remote work, and said Austin's ability to navigate it was partially why the company expanded to Central Texas.

"It's a no-brainer that the combination of a great business climate paired with a region full of really smart, really hardworking people resulted in Austin weathering the pandemic better than other cities," Chicola said. "This combination is why Rev created a second headquarters here in the first place. As more and more tech companies relocate to our region, Austin is further solidifying itself as a leader in the tech space."

Rev was founded in 2010 by five classmates at Massachusetts Institute of Technology and expanded to Austin last year. The company offers transcription, caption and subtitle translation services using a combination of artificial intelligence and freelancer transcribers. Its products include transcription services, speech to text products, live video captions and subtitles, and two apps. The products are priced by the minute and are used by more than 170,000 customers.

This article originally appeared on Austin American-Statesman: Austin-based Rev.com will lay off 85 to cut costs