Home » Business News • US Employment News » Discord axes 170 jobs after massive hiring spree

Discord axes 170 jobs after massive hiring spree

By Nithya Bose in Business News, posted January 12, 2024

Discord is to cut 170 employees, following a previous cut of about 40 jobs in August.

It is part of a broader trend of tech companies downsizing at the beginning of 2024,

CEO Jason Citron said in an internal memo that these layoffs were necessary to enhance efficiency after a significant hiring surge in 2020.

Discord, a popular messaging service for gamers, had 870 employees as of August.

Despite being valued at approximately $15 billion in 2021, Discord's move reflects the challenging tech landscape in 2022.

It is marked by a market contraction for high-risk tech due to factors like inflation and rising interest rates.

Unlike Meta and Snap, Discord's revenue model isn't dependent on online advertising.

Instead, it relies on subscribers paying a monthly fee for additional features, such as HD video streaming.

In October, the company introduced an online marketplace for users to buy digital avatars and virtual goods.

The layoffs come amid a broader trend in the tech industry, with companies like Audible, part of Amazon, reducing staff by five percent for increased efficiency.

Google is letting go of hundreds of workers to prioritize significant product initiatives.

Unity Software recently announced a 25 percent workforce reduction, while security firm Trend Micro revealed a 2 percent global staff cut earlier this week.

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