Overview
- Google AI Studio and Vercel said they will sponsor Tailwind CSS, with Supabase also pledging support, following the company’s disclosure of financial strain.
- Tailwind laid off three of its four engineers, a 75% cut, according to CEO Adam Wathan’s public statements.
- Wathan said revenue fell about 80% as documentation traffic dropped roughly 40% since 2023, which he attributes to developers relying on AI tools instead of visiting the docs.
- The remaining staff consists of the three owners, one engineer, and a part-time operations employee, and the team warned of slower reviews and features as it cannot prioritize LLM-optimized docs now.
- Despite the decline in sales, Wathan said usage is higher than ever and that holiday forecasts showed payroll would be at risk within six months without cuts, prompting layoffs with severance.