Popular chat app Discord axes 17% of workforce
Discord, a popular chat and messaging app, announced plans to cut 17% of its workforce, impacting around 170 employees. This move follows a trend of job cuts in the tech world, with companies like Google, Amazon, and Meta also making similar decisions. Discord's CEO, Jason Citron, explained in an internal memo that the company's rapid growth led to overhiring and a decrease in operational efficiency.
Discord grew five times its original size in 3 years
Having grown five times its original size since 2020, Discord undertook too many projects, thereby reducing efficiency, Citron admitted. He stated, "We have to face some hard truths. We are increasingly clear on the need to sharpen our focus and improve the way we work together to bring more agility to our organization." This sentiment mirrors those of other tech CEOs, such as Meta's Mark Zuckerberg and Spotify's Daniel Ek, who have also conducted mass layoffs in recent months.
Discord's financial stability and support for departing employees
Despite these job cuts, Discord remains financially secure, having raised around $1 billion in funding and holding over $700 million in cash. The company is working toward profitability this year and has been considering going public since turning down a $12 billion acquisition offer from Microsoft in 2021. Discord is providing affected employees with five months of salary, continued benefits, three months of outplacement services, and equity vesting of awards scheduled for February 1, 2024.
