Discord Announces Layoff: Who Will Monitor the AI Music Hubs?

Discord, a popular communication platform, has announced a workforce reduction of 17%, impacting 170 employees including engineers, product managers, and safety team members. The latest round of layoffs follows a series of retrenchments at Amazon subsidiaries including Prime Video, Twitch and Audible. Discord CEO, Jason Citron, revealed that the team reduction is an unfortunate move aimed at improving operational efficiency for long-term growth.

Deepening Layoffs Industry-Wide

In an unexpected announcement, Discord is set to reduce its workforce, with 170 employees at its San Francisco headquarter set to exit on February 2. This move is the latest in a growing trend of layoffs in tech companies, with Amazon-owned entities like Prime Video, Twitch, and Audible having recently announced similar redundancy rounds.

Discord’s Goals and Challenges

The company, known for its communication platform serving businesses and gamers, is yet to achieve profitability. The decision comes as Discord works tirelessly to regain its user growth momentum, which saw a surge during the global pandemic. Jason Citron, Discord’s CEO, outlined in a memo to staff that operational efficiency was a significant concern leading to the workforce reduction.

Support for Departing Employees

In a show of support to the impacted staff, departing employees are set to receive five months full salary, an additional week pay for each full year served at Discord, five months of benefit continuation, and three months of outplacement services. They will also maintain access to their health care plan through 2024.

Financial Status and Future Prospects

Despite facing these challenges, Discord has raised more than $1 billion in funding and has a substantial $700 million cash reserve. The company is mulling a public listing after rejecting a $12 billion acquisition offer from Microsoft in 2021.

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