The Discord app is seen on an iPhone on this photograph illustration in Warsaw, Poland, on April 3, 2021.

Jaap Arriens NurPhoto | Getty Photos

Discord will lay off 17% of the corporate's workforce, which equates to 170 staff, a spokesperson confirmed on Thursday.

The corporate, which gives a well-liked messaging service utilized by avid gamers, beforehand eradicated about 40 jobs in August and joins a rising checklist of corporations to announce cuts earlier this yr.

Discord CEO Jason Citron mentioned in an inside memo that the layoffs are essential for Discord to grow to be extra environment friendly after a hiring growth in 2020, based on The Verge, which first reported on the most recent job cuts. Discord employed 870 individuals in August, based mostly on information from PitchBook.

Is the bubble bursting for tech workers?

Discord, which ranked 18th on CNBC's Disruptor 50 checklist for 2023, was valued at round $15 billion in 2021 on the top of the tech growth. The market contracted sharply for high-risk expertise in 2022 as rising inflation and rising rates of interest crimped development and made capital prices dearer.

In contrast to social internet platforms like Meta and snap, Discord doesn’t depend on internet advertising, however is as an alternative supported by subscribers who pay a month-to-month price for further options, comparable to the power to stream high-definition video. In October, the corporate debuted an internet market that lets customers purchase digital avatars and different digital items to personalize their accounts.

Layoffs have been a giant story within the tech panorama because the calendar turned to 2024.

audible, Amazon audiobook unit, is reducing 5% of its employees in an effort to grow to be “leaner and extra environment friendly,” CEO Bob Carrigan wrote in a memo Thursday. Google father or mother Alphabet laid off a whole lot of employees on Wednesday to concentrate on the corporate's “largest product priorities,” a spokesman mentioned.

Earlier this week, Unity Software program mentioned it could lay off 25% of its workforce, whereas safety firm Pattern Micro mentioned it could reduce 2% of its world employees.

WATCH: Google to put off a whole lot as massive tech layoffs proceed

Google to lay off hundreds as big tech layoffs continue in 2024

Don't miss these tales from CNBC PRO:

Source link