Discord is laying off 17% of its workforce, according to CEO Jason Citron, in order to streamline focus and enhance collaboration for increased organizational agility.
The job cuts were announced at a company-wide meeting, impacting 170 employees across different divisions. This marks Discord’s most significant staff reduction to date, surpassing the 4% decrease in team members last August.
Challenges following quick expansion
Citron acknowledged in a communication to staff that the team has expanded rapidly in the past few years, growing fivefold since 2020, leading to a decrease in efficiency. Despite not encountering major financial issues, the company has not achieved profitability yet and aims to boost user growth following a rise during the pandemic.
Prospects and considerations for starting a business in the capital.
Discord, having secured around $1 billion in funding, possesses more than $700 million in cash and aims to be profitable this year.
Despite turning down a $10 billion acquisition bid from Microsoft in 2021, it appears that the company is still a long way from going public. They are currently assessing their choices amidst a challenging landscape in the tech sector, which has seen significant losses at Google and Amazon this week.
The Verge provides information.
