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.
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.