Discord Cuts 17% Of Employees To ‘Sharpen Its Focus

The popular messaging service Discord cuts its 17% employees to enhance the efficiency of its workforce. The platform widely used by gamers has confirmed the layoff of its 170 employees, CNBC reported. 

The announcement has been made to follow the trend of early layoff of the companies in the new year. 

Discord CEO Jason Citron informed in an internal memo that it is laying off 17% of its employees across different departments. According to Jason Citron, this layoff has aimed to improve the efficiency of its task force. 

In a recent memo shared by Citron, which was published by The Verge, he added that our workforce has been rapidly increasing since 2020. However, this expansion led to challenges in efficiency as they took on more projects. 

Citron recognizes the importance of refocusing and enhancing collaboration for greater agility. The analysis prompted the decision to downsize the workforce as part of efforts to streamline operations. 

Similarly, Twitch CEO Dan Clancy recently stated that the company’s recent layoffs aim to make the company more sustainable. Discord revealed last year several monetization features including a subscription feature. 

Discord, was recognized as the 18th disruptor on CNBC’s 2023 50 list of companies reaching approximately $15 billion. However, the tech industry declined in 2022 due to inflation and high-risk tech companies.

Discord makes money through subscribers rather than ads. Users pay a monthly fee for premium features such as high-quality video streaming.

In October, the company launched an online marketplace allowing users to purchase digital avatars and virtual items to customize their accounts.

Citron has mentioned that Discord is providing a substantial package to employees who have been laid off. The package includes five months’ salary, an additional week’s salary, and access to healthcare coverage through the end of the calendar year.

Similarly, Amazon is decreasing the size of its workforce by 5 per cent to achieve a more streamlined and efficient organizational structure.