Discord Cuts Workforce by 4% Amid Restructuring

Quincy Jon, Tech Times 04 August 2023, 01:08 pm

Discord, a well-known messaging platform used by gaming and creative communities, recently saw substantial changes to its workforce.

As part of the company's restructuring efforts, roughly 40 people, or 4% of its total, were let go, according to a report from TechCrunch. The layoffs have affected personnel in the marketing, design, and entertainment partnership departments.

Several former Discord workers confirmed that they were among those impacted by the job losses by describing their experiences on social media platforms like Twitter and LinkedIn. The reorganization effort attempts to put the business in a position for long-term success and development in a cutthroat industry.

Impacted Workers Ensured Assistance

In response to the reports of layoffs, a Discord spokesperson confirmed that the firm has cut off 4% of its workforce as part of the reorganization of some business units and ensured that the affected individuals would receive assistance. The representative noted that the firm commits to achieving its purpose and long-term success.

Discord's commitment to its primary objective of offering a social messaging network extensively utilized in the gaming and creative communities has remained the same despite the restructuring.

The firm recently unveiled a number of upgrades and services, including the Family Center, a tool meant to help parents monitor their kids' app use. Direct chat and Xbox game broadcasting to servers have also been added to improve user experiences. The Clyde bot has been updated using ChatGPT technology in partnership with OpenAI, enabling users to ask for help in group conversations, per Tech News Space.

An Uncertain Move

Given the changing creative economy and digital industry, Discord's reorganization remains uncertain. The layoffs are intended to boost the company's long-term growth, but they may hurt staff morale and strategic direction.

Fidelity's properties, including Discord and Reddit, surged in value last week, a good indication considering that Discord's worth dropped 47% from $3.3 million in January 2021 to $1.7 million in June.

Despite Discord's relative stability compared to other creator economy businesses like Meta (previously Facebook) and TikTok, it now joins the group of over 25 companies that have reduced their workforces since May 2022, according to Innovation Village. Major enterprises and industry newcomers alike have been hit by these layoffs, including Linktree and FaZe Clan, two well-known names in esports.

Users and industry watchers will carefully follow Discord's reorganization process to see how the firm responds to the shifting market and keeps innovating in its quest for long-term development and success.