Discord Lays Off 170 Employees Amid Ongoing Profitability Struggles
Discord cuts 17% of its workforce, or about 170 employees, as CEO Jason Citron admits the company grew too quickly and lost operational efficiency. The popular chat platform remains unprofitable despite its massive pandemic-era expansion.
Discord lays off 17% of its staff, equating to approximately 170 employees, as part of a major effort to increase organizational agility. CEO Jason Citron announces the cuts during an all-hands meeting, explaining that the company's workforce grows fivefold since 2020. This rapid expansion leads to too many simultaneous projects and decreased operational efficiency.
The popular chat platform still struggles to achieve profitability despite experiencing massive user growth during pandemic lockdowns. These current layoffs follow a smaller round of job cuts in August that eliminates nearly 40 positions, primarily affecting marketing, design, and entertainment partnerships. Discord now focuses on sharpening its priorities to stabilize its financial standing.
This reduction in workforce is part of a brutal week for the technology sector, with multiple major companies making sweeping staff cuts. Video game engine Unity terminates 1,800 jobs, Amazon-owned Twitch lays off 500 employees, and Amazon cuts several hundred roles from Prime Video and MGM Studios. The audiobook company Audible also reduces its headcount by 5% during this same period.