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2024 isn't even two weeks old and this is now the fourth article going up about layoffs at tech and gaming companies. First it was Bossa, then Unity, and then it was Twitch. In fact, there were other cuts within these industries we didn't get a chance to report on. Those include massive cuts at Google, Amazon, and Xerox. Now, we are learning that the gaming-focused social platform Discord is laying off 17% of its staff, or 170 employees.
This was first reported on by The Verge and then later confirmed by the New York Times. The layoffs were announced to Discord employees through an all-hands meeting and internal memo. Discord CEO Jason Citron says that these layoffs are necessary in order to "sharpen our focus and improve the way we work together to bring more agility to our organization."
In the internal memo, Citron says that the layoffs come as a result of growing too big, too fast. According to Citron, Discord grew to five times its original size since 2020. He notes that the company has taken on too many projects and, as a result, the work done across the company has been less efficient.
The only bright spot here is that those who are being laid off will be well supported as they seek new employment. Those laid off will receive five months of salary (plus additional pay per each full year employed), five months of benefits, access to health coverage through 2024, and more.
Citron's full memo to Discord employees can be found in full below.
Hi @everyone,
I want to follow up on what we just covered at our all-company meeting and share some context.
Today we are making the unfortunate and difficult decision to reduce the size of Discord’s workforce by 17%. This means we are saying goodbye to 170 of our talented colleagues. This is a decision we did not take lightly, but it is one that we have conviction in to better serve our users, our business and our mission over the long term.
Where we are and how we got here
Our company has changed and grown significantly over the past few years. We should all be really proud of what we’ve been able to accomplish together to serve the millions of people who turn to Discord every day to spend time with their friends.
At the same time, we have to face some hard truths. We grew quickly and expanded our workforce even faster, increasing by 5x since 2020. As a result, we took on more projects and became less efficient in how we operated.
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. This is what largely drove the decision to reduce the size of our workforce. While difficult, I am confident this will put us in the best position to continue building a strong and profitable business that delivers amazing products for our users and supports our mission for years to come.
What happens next
I’m sure all of you are anxious to know what this means for each of you.
- By 10:30 a.m. PT, everyone will receive an email. In your email, you will learn whether or not your employment has been impacted by this reduction-in-force
- Leadership will hold a meeting with departing team members at 11:00 a.m. PT to discuss next steps
- For all remaining employees, we will come back together this afternoon at 1:00 p.m. PT to talk about what’s next
How we’re taking care of our colleagues
It is incredibly important to me that we support departing team members through this difficult time and provide them with a sizable runway as they transition into future employment. To that end, we are offering them:
- Five months of salary (plus an additional week for every full year at Discord)
- Five months of benefit continuation
- Three months of outplacement services
- Equity vesting of awards scheduled to vest on Feb. 1, 2024
- Continued access to Modern Health through the end of 2024, and more
I’ll end by sharing deep appreciation and gratitude for those leaving us. Discord is better because of your contributions and the passion you brought to delivering for our users, our company, and each other. Thank you for everything.
It’s incredibly difficult to say goodbye to respected peers, many of whom have become friends. I’m hopeful that working on and with our product has reinforced that these bonds can be sustained and even strengthened beyond the “walls” of any one place.
Take care of yourselves and let’s look out for each other through this particularly challenging time.
Jason
I want to follow up on what we just covered at our all-company meeting and share some context.
Today we are making the unfortunate and difficult decision to reduce the size of Discord’s workforce by 17%. This means we are saying goodbye to 170 of our talented colleagues. This is a decision we did not take lightly, but it is one that we have conviction in to better serve our users, our business and our mission over the long term.
Where we are and how we got here
Our company has changed and grown significantly over the past few years. We should all be really proud of what we’ve been able to accomplish together to serve the millions of people who turn to Discord every day to spend time with their friends.
At the same time, we have to face some hard truths. We grew quickly and expanded our workforce even faster, increasing by 5x since 2020. As a result, we took on more projects and became less efficient in how we operated.
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. This is what largely drove the decision to reduce the size of our workforce. While difficult, I am confident this will put us in the best position to continue building a strong and profitable business that delivers amazing products for our users and supports our mission for years to come.
What happens next
I’m sure all of you are anxious to know what this means for each of you.
- By 10:30 a.m. PT, everyone will receive an email. In your email, you will learn whether or not your employment has been impacted by this reduction-in-force
- Leadership will hold a meeting with departing team members at 11:00 a.m. PT to discuss next steps
- For all remaining employees, we will come back together this afternoon at 1:00 p.m. PT to talk about what’s next
How we’re taking care of our colleagues
It is incredibly important to me that we support departing team members through this difficult time and provide them with a sizable runway as they transition into future employment. To that end, we are offering them:
- Five months of salary (plus an additional week for every full year at Discord)
- Five months of benefit continuation
- Three months of outplacement services
- Equity vesting of awards scheduled to vest on Feb. 1, 2024
- Continued access to Modern Health through the end of 2024, and more
I’ll end by sharing deep appreciation and gratitude for those leaving us. Discord is better because of your contributions and the passion you brought to delivering for our users, our company, and each other. Thank you for everything.
It’s incredibly difficult to say goodbye to respected peers, many of whom have become friends. I’m hopeful that working on and with our product has reinforced that these bonds can be sustained and even strengthened beyond the “walls” of any one place.
Take care of yourselves and let’s look out for each other through this particularly challenging time.
Jason
