Popular messaging application Discord is set to lay off 17% of its employees affecting 170 of them across different departments. This comes as the company is aiming to refine its focus and operational efficiency.
CEO Jason Citron conveyed this decision in an all-hands meeting and an internal memo obtained by The Verge.
In the memo, Citron mentioned that this reduction is not a hastily made choice but a necessary step to better serve Discord's users, improve the business, and uphold its mission in the long run.
"Today, we are increasingly clear on the need to sharpen our focus and improve the way we work together to bring more agility to our organisation. This is what largely drove the decision to reduce the size of our workforce", Citron said in the memo.
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The memo shared by Citron outlined the next steps for employees, including the receipt of individual emails by 10:30 a.m. PT to confirm the impact on their employment. Departing team members will attend a meeting at 11:00 a.m. PT to discuss next steps, while remaining employees will regroup in the afternoon at 1:00 p.m. PT to address the future of the company.
Discord is offering departing employees five months of salary, benefit continuation, three months of outplacement services, and equity vesting of awards scheduled for February 1, 2024
Earlier in August, the company downsized by 4% and the latest announcement is the largest staff reduction exercise.
Discord saw a substantial growth with its workforce increasing fivefold since 2020. Citron acknowledged that this rapid expansion led to taking on more projects, resulting in decreased operational efficiency.
The company has raised approximately $1 billion in funding, boasting a cash balance of over $700 million. Discord aims to achieve profitability this year, with discussions about a potential public offering ongoing since rejecting a $12 billion acquisition offer from Microsoft in 2021.
Discord is a communication platform that allows users to chat via text, voice, and video. It's designed for communities and groups, providing features like servers, channels, and roles to organise discussions