Discord, a popular messaging service for gamers, has announced that it will lay off 17% of its workforce, amounting to 170 employees. This move comes after the company previously eliminated about 40 jobs in August. Discord CEO Jason Citron stated in an internal memo that these layoffs are necessary to improve efficiency following a hiring surge in 2020.
Despite being valued at approximately $15 billion in 2021 during the tech boom, Discord’s decision reflects a broader trend in the tech industry. The market has contracted for high-risk tech companies in recent years due to factors like soaring inflation and rising interest rates, which have increased capital costs.
Unlike social web platforms that rely heavily on online advertising, Discord generates revenue through subscriber fees for additional features, such as high-definition video streaming. Additionally, the company introduced an online marketplace last year, allowing users to purchase digital avatars and other virtual goods.
Discord’s layoffs are part of a larger trend across the tech sector in 2024. Audible, Amazon’s audiobook unit, is cutting 5% of its staff to streamline operations. Google’s parent company, Alphabet, recently laid off hundreds of workers to focus on key product priorities. Unity Software and security firm Trend Micro have also announced layoffs this year.
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