Discord is implementing a workforce reduction of 17%, as CEO Jason Citron aims to “sharpen our focus and improve the way we work together to bring more agility to our organization.”
These layoffs were officially communicated to employees during an all-hands meeting and through an internal memorandum obtained by The Verge. Approximately 170 individuals across various departments will be affected by these workforce changes.
It’s worth noting that Discord’s financial situation, as indicated by Citron’s message to employees and according to The Verge, doesn’t appear to be in dire straits. However, Discord has yet to achieve profitability and is currently working on reinvigorating user growth following a surge during the pandemic.
In his full memo to employees, Citron acknowledged that Discord had expanded its workforce too rapidly in recent years, a sentiment increasingly expressed by tech CEOs.
Citron wrote:
We grew quickly and expanded our workforce even faster, increasing by 5x since 2020. As a result, we took on more projects and became less efficient in how we operated.
These workforce reductions represent the most extensive layoffs undertaken by Discord to date, following a 4% staff reduction in August of the previous year. These cutbacks align with a broader trend of layoffs affecting the tech industry, with companies like Google and Amazon also implementing significant staff reductions in recent times.
Discord has amassed approximately $1 billion in funding and currently holds over $700 million in cash reserves. The company is actively pursuing profitability in the current fiscal year, as indicated by a source familiar with the situation. Discord has been considering the possibility of going public, a decision made more significant by its rejection of a $12 billion acquisition offer from Microsoft in 2021.
