Discord cuts 17% of workforce, joining growing list tech companies downsizing to start 2024
Discord cuts 17% of workforce, joining growing list tech companies downsizing to start 2024

The Discord app is seen on an iPhone on this picture illustration in Warsaw, Poland on April 3, 2021.

Jaap Arriens | NurPhoto | Getty Images

Discord will lay off 17% of the corporate’s workforce, which equates to 170 workers, a spokesperson confirmed on Thursday.

The firm, which offers a well-liked messaging service utilized by avid gamers, beforehand eradicated about 40 jobs in August and joins a growing list of companies to announce cuts on the start of this yr.

Jason Citron, the CEO of Discord, stated in an inner memo that the layoffs are vital for Discord to turn out to be extra environment friendly after a hiring growth in 2020, in accordance to The Verge, which first reported on the newest job cuts. Discord employed 870 folks as of August, primarily based on knowledge from PitchBook.

Discord, which ranked 18th on CNBC’s Disruptor 50 list for 2023, was valued at about $15 billion in 2021 on the peak of the tech growth. The market contracted dramatically for high-risk tech in 2022 as hovering inflation and rising rates of interest crimped progress and made capital prices costlier.

Unlike social net platforms reminiscent of Meta and Snap, Discord does not depend on internet advertising, however is as an alternative supported by subscribers who pay a month-to-month charge for additional options like the power to stream high-definition video. In October, the corporate debuted a web based market that lets customers buy digital avatars and different digital items to customise their accounts.

Layoffs have been an enormous story throughout the tech panorama because the calendar turned to 2024.

Audible, Amazon’s audiobooks unit, is cutting 5% of its employees in an effort to turn out to be “leaner and extra environment friendly,” CEO Bob Carrigan wrote in a memo on Thursday. Google-parent Alphabet laid off a whole lot of staff on Wednesday to deal with the corporate’s “greatest product priorities,” a spokesperson stated.

Earlier this week, Unity Software said it will lay off 25% of its workforce, whereas safety agency Trend Micro said it will reduce 2% of its world employees.

WATCH: Google to lay off hundreds as big tech layoffs continue

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