Discord Announces Layoff of 17% Staff Members: Impact on Gaming Industry
In industry news, Discord announced that it will be laying off 17% of its workforce, affecting approximately 170 employees across various departments. While not gaming-specific, this decision may have a ripple effect on the industry.
Discord’s Memo to Employees
CEO Jason Citron addressed the team:
“Today we are making the unfortunate and difficult decision to reduce the size of Discord’s workforce by 17%,”
“This means we are saying goodbye to 170 of our talented colleagues. This is a decision we did not take lightly,”
“but it is one that we have conviction in to better serve our users, our business and our mission over the long term.”
Growth and Focus: The Need for Agility
In the memo, Citron acknowledged Discord’s impressive growth over the past four years, with a fivefold increase in staff. He explained that this rapid expansion led to the company becoming “less efficient.”
“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 organization,”
“This is what largely drove the decision to reduce the size of our workforce.”
Second Layoff in Six Months
This is the second time in six months that Discord has reduced its staff. The last round of layoffs occurred in August, when 4% of employees were let go.
Severance Packages and Support for Affected Employees
The affected employees will receive five months of salary, an additional week for each full year with the company, five months of benefits, equity vesting scheduled to vest on February 1, and outplacement services.
Discord has yet to comment on the layoffs and any potential changes to its offerings for the gaming community.
The Future of Discord
As a company that has played a significant role in the gaming industry, especially with its voice and text communication services for gamers, the impact of Discord’s recent decisions will be closely watched.
Stay tuned to Insider Gaming for more information as it becomes available. In the meantime, thoughts on Discord’s latest move? Share in the comments below.
