Discord Announces 17% Workforce Reduction
Discord, the popular communication platform, will be reducing its workforce by 17% due to the company's excessive expansion in 2020, as informed by CEO Jason Citron to the employees
Discord CEO Jason Citron revealed that the company is reducing its workforce by 17%, affecting around 170 employees. Citron emphasized the need to refocus and increase organizational flexibility, leading to this "difficult decision." The announcement was made during an all-hands meeting and in an internal memo, with Citron acknowledging the need to re-stabilize after the company's rapid expansion. Despite significant growth since 2020, Discord has not achieved profitability and is working to regain user growth after a surge during the pandemic, according to The Verge.
The upcoming layoffs will affect all departments of the company and are the largest so far. This is the second round of layoffs in less than six months, following a 4% staff reduction in August. Despite this, Discord is not in a critical financial situation, with over $700 million in cash reserves. The company has been considering going public after rejecting a $12 billion acquisition offer from Microsoft in 2021, but is not ready to do so yet. According to The Verge.
Discord is the most recent tech company to announce layoffs in 2021. Just this week, Twitch revealed plans to lay off 500 employees, reducing its workforce by 35%. Unity is also expected to cut 25% of its workforce in the near future.
Editor's P/S
As a Gen Z netizen, I am deeply concerned about the recent announcement of Discord's 17% workforce reduction. Discord has been a vital platform for communication and community-building, especially for gamers and tech enthusiasts like myself. The news of these layoffs is disheartening and raises questions about the stability and future of the platform. I hope that Discord can weather this storm and continue to provide the valuable services that have made it so popular.
Furthermore, the broader trend of tech companies announcing layoffs is deeply concerning. It highlights the challenges and uncertainties faced by the tech industry, which has been a major driver of innovation and economic growth in recent years. As a Gen Z netizen, I am invested in the success and sustainability of the tech industry, and I hope that these companies can find ways to navigate the current economic climate without resorting to large-scale layoffs.
