Discord has announced a significant layoff of its workforce, affecting17% of the company’s employees or 170 individuals from different departments. CEO Jason Citron revealed this move as part of a broader trend in the tech industry which is moving from rapid pandemic-era growth to a more cautious phase.
Discord has not made a profit even though it managed to raise $1 billion in funding and owns over $700 million in cash reserves. Since 2020, the company’s workforce increased five times over, resulting in inefficiencies and an unsustainable operational model. This shrinking mirrors the broader tech sector, which is currently letting go of employees in layoffs and even giants like Google and Amazon are watching their head count and recalibrating from reckless growth.
This situation with Discord reflects the trend of caution in the tech industry. Despite the pandemic era growth in its user base, the company is refocusing to be more leaner and agile. Discord does a great deal for impacted workers with five months’ pay, continuing benefits, outplacements services and equity vesting to show that those leaving are equally important as those staying behind and valued for their work. This move is indicative of a wider trend in the industry towards sustainability and strategic realignment.
