Discord lays off 170 people, blames growing too quickly | TechCrunch::Discord has become a mainstay for many online communities in recent years, but its relative success hasn’t shielded the platform from the financial woes Discord is laying off 17% of staff, or 170 people.
So basically… they’re doing so well that they have to fire people. Cool story Discord. Out of curiosity how much are your Executives getting paid?
If you read at least the summary from the bot, you’d see that discord isn’t and never was profitable.
I wouldn’t call that “doing too well to fire people”, just means they fucked up and hired more people than they could financially/operationally afford
Aw damn, not growing fast enough… better fire some people.
growing too quick in the number of employees, not users/revenue.
We grew quickly and expanded our workforce even faster, increasing by 5x since 2020
You can read the internal memo here. They increased their workforce by 400% in 3 years so it was bound to happen.
The severance package is 5 months of pay plus a week for every year they worked there, and a slew of other things to help the transition to a new job.
I dint think Discord will ever be profitable. But there is extreme value in communication. The need for profit destroying good things once again.
Since they were overstaffed that means the executive team messed up. I am sure they will be held accountable….
They didn’t mess up. The government interest rates were 0% when they borrowed money to grow their workforce by about 800 people. The interest rate has risen to 5.5% - an interest rate hike that hasn’t been seen since the “stagflation” crisis fifty years ago and one that couldn’t really be forseen unless you could have predicted the wars in Russia and Israel.
It’s unfortunate for the 170 people being fired, but what’s the alternative? Keep going until they’re bankrupt and then all 1000 people are out of a job?
The government absolutely knew this would happen when they decided to raise interest rates. They are acting on advice that things would be even worse if they didn’t rise interest rates. Other countries around the world are doing the same thing, with the same unfortunate results.
This is the best summary I could come up with:
Discord has become a mainstay for many online communities in recent years, but its relative success hasn’t shielded the platform from the financial woes plaguing the tech industry.
Like other companies making sweeping cuts to their workforces this week, Discord is laying off 17% of its staff, or about 170 people.
Today, we are increasingly clear on the need to sharpen our focus and improve the way we work together to bring more agility to our organization.
Discord saw massive growth during pandemic lockdowns, but still isn’t profitable, the Verge reports.
Last August, Discord laid off 4% of its staff — nearly 40 employees — as part of a company-wide restructuring.
It’s been a particularly brutal week in tech layoffs; in the last few days, video game engine Unity cut 1,800 jobs, Amazon-owned Twitch laid off roughly 500 employees and Amazon let go of “several hundreds” of Prime Video and MGM Studios staff.
The original article contains 263 words, the summary contains 153 words. Saved 42%. I’m a bot and I’m open source!
I swear this is the nerds fault. We showed the Kubernets “Hey look, if we need more we can make more. If we need less we can just turn off the ones we don’t need automatic” and some manager is like “I can do that”
