Discord Implements Workforce Reduction, Cutting 17% of Employees in Early 2024
In a grim start to 2024, the technology and gaming sectors are experiencing a surge in layoffs, with Discord becoming the latest casualty by cutting 17% of its staff.
The news broke through an internal memo from Discord’s CEO, Jason Citron, which was obtained and published by The Verge. Citron acknowledged that Discord’s workforce had expanded “by 5x since 2020,” contributing to a decrease in efficiency. He emphasized the need to refocus and enhance collaboration within the organization to bring greater agility, citing these factors as the primary drivers behind the decision to downsize the workforce
A total of 170 employees will be affected by the layoffs. Departing staff members will receive five months of salary, along with an additional week’s pay for each year they have worked at the company. Additionally, they will continue to receive benefits for five months.
Discord now joins the ranks of other major gaming industry players grappling with significant layoffs at the start of the year. Just a few days ago, game engine provider Unity announced a 25% reduction in its staff, amounting to 1,800 workers. More recently, streaming platform Twitch confirmed layoffs affecting over 500 people, roughly a third of its workforce. Beyond the gaming sphere, Google revealed today that it would be cutting hundreds of jobs.
The gaming industry, despite experiencing a standout year in 2023 with numerous high-quality releases, is grappling with a substantial human toll. Estimates suggest that between 6,000 and 7,000 workers in the game industry faced layoffs in 2023. With just 11 days into 2024, the industry is already witnessing a continuation of this unfortunate trend.