Discord Cuts 17% of Staff in Effort to Enhance Organizational Agility
Discord, the popular gaming-centric social platform, is the latest company to face the impact of industry-wide layoffs, with a 17% reduction in its workforce, affecting 170 employees. The Verge reported this development, and IGN has independently confirmed the accuracy of the information. CEO Jason Citron communicated the decision through a companywide meeting and an internal memo, emphasizing that the layoffs are part of a strategic effort to refine the company’s focus and enhance operational efficiency.
In the memo, Citron states, “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.”
The reasoning behind the cuts lies in Discord’s acknowledgment that its rapid growth, expanding fivefold since 2020, led to operational inefficiencies. The company aims to address these challenges and create a more agile and streamlined organization to better serve its user base.
Employees affected by the layoffs are being offered a comprehensive support package, including five months of salary, additional pay based on years of service, five months of benefit continuation, and access to Modern Health through 2024. Discord’s commitment to providing a substantial runway for departing staff underscores its recognition of the challenges faced by those affected.
This announcement follows a trend of layoffs within the gaming industry at the beginning of the new year. Earlier reports highlighted staff reductions at Twitch, impacting 500 team members, and Unity, which faced significant cuts affecting around 25% of its workforce. Discord’s move appears to be part of broader industry adjustments as companies seek to optimize their operations in response to evolving market dynamics and challenges.