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Because of AI Tailwind lost 75% of their engineers
According to Adam Wathan (creator of TailwindCSS), Tailwind is growing faster than ever. It’s bigger than it’s ever been. And yet revenue is down nearly 80%. The core problem is discovery. Traffic to their docs is down roughly 40% compared to early 2023. And the docs are how people find Tailwind’s commercial products. When discovery disappears, so do customers. People aren’t reading the docs anymore. LLMs are. === Do you think this will affect other websites/products? More importantly, how does this change our role as designers?
The headline says that TailwindCSS has laid off 75% of its engineers.
But that's not the real story. Yes, they laid off 3 out of their 4 engineers. Because of poor product strategy. TailwindCSS biz model relied on users to be directed to their development pages and make 1x purchases. Instead, AIgents allow tailwindCSS to be generated automatically, and the user never goes to those pages. (Dev info is democratized through open source) thus never making those purchases. (Didn't Amazon try to sue for this?) Revenue went down 80% and tailwindCSS Suddenly had a payroll problem. There's a butterfly effect. Tailwind CSS is now running with 3 founders and one developer for a platform that supports hundreds of thousands of businesses. The larger issue at hand is that this could affect many other companies that have been built recently and quickly that the rest of the community relies on. If the business model was not built with product in mind, it could collapse overnight. What's kind of cool is the support from the developer community. For example, Google AI studio is stepping in to help. But are the big giants going to be stepping in to help all of these small businesses and aspiring entrepreneurs as they slowly devour the little guy with the big dream? My takeaway: Invest in continual product research. The market is constantly changing, and the business model needs to be just as agile. Don't drop the product people! https://www.perplexity.ai/page/tailwind-css-lays-off-75-of-en-xM_bFhPXQ7u5Ex.5E3l0kA
Business Fundamentals. Practice 1 Discussion
link your conversation here (if possible) and share your experience.
Construct Conversion Funnel Disccusion
Share your output here and talk about your experience constructing the conversion funnel. - What was challenging? - How did this change the way you see your role/work? - Other realization?
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HEART metrics discussion
Share your output and the experience creating it. - What was challenging? - Was there any surprises? - Any realization?
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