Tailwind labs cuts 75% of engineers as AI slashes revenue

Tailwind CSS, with its 75 million monthly downloads, saw revenue drop nearly 80% as AI tools like Cursor and GitHub Copilot cut docs traffic by 40%, hurting sales of paid products like Tailwind UI.

Wathan explained the steady decline caught up during holiday forecasting, leaving just six months of runway, so the team shrank to himself, co-owners Steve Schoger and Jonathan Reinink, one engineer Robin, and ops lead Peter—with generous severance for those let go.

Support poured in from Vercel CEO Guillermo Rauch and others via sponsorships, as Wathan stays optimistic about adapting with AI's help.

Is this the genesis of the AI takeover or just something else..