Discord is reportedly laying off 17% of its workforce. CEO Jason Citron in an internal memo stated that the firm grew headcount way too fast over the past couple of years.
Discord Is Laying Off 17% Of Its Workforce
Discord as you should know is set to lay off 17 percent of its staff, a said move that CEO Jason Citron revealed is meant to “sharpen our focus and improve the way we work together to bring more agility to our organization.”
The cuts in question were announced today to employees in an all-hands meeting and an internal memo that have been obtained. They will reportedly impact 170 people across several departments.
Based on the message of Citron to employees and a certain understanding of the business, Discord is not in dire financial straits, though it is still yet to become profitable and is still also trying to get user growth after a reported surge during the pandemic. In his shared memo to employees, which you can read in full online, Citron revealed that Discord grew its headcount way too fast over the last couple of years which is an admission that has become quite common among tech CEOs as of late.
“We grew quickly and expanded our workforce even faster, increasing by 5x since 2020,” Citron wrote. “As a result, we took on more projects and became less efficient in how we operated.”
These Cuts Are Largest Of Discord to Date
These cuts in question are the largest of Discord to date after the messaging app reportedly laid off 4 percent of staff just last August. The company added to the layoffs that continue to sweep across the tech market and industry, and this is including deep cuts at Google and Amazon just this very week.
Discord Has Raised a Total of About $1 Billion in Funding
Discord as you should know has raised a total of about $1 billion in funding. It has over $700 million in cash on its balance sheet and the goal of the company to become profitable this year, as per a person familiar with the matter. The firm also has been contemplating going public ever since it turned down a $12 billion acquisition offer from Microsoft back in 2021, though it has been revealed that it is nowhere near close to doing so.
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