Discord, the social chat and messaging start-up beloved by gamers, informed its employees on Thursday that it plans to reduce 17 percent of its staff, adding to the recent trend of job cuts in the tech industry.
Approximately 170 jobs will be impacted by the layoffs, according to an internal memo sent by Jason Citron, Discord’s founder and CEO, as seen by The New York Times.
“We have to face some hard truths,” Mr. Citron wrote. “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.”
Discord has confirmed the layoffs, which were previously reported by The Verge.
The tech industry has already seen significant reductions this year, including cuts from major companies such as Google, Amazon, and Meta. Gaming companies, in particular, have also downsized their workforces, with Twitch and Unity Software both making cuts in the past week.
On Wednesday, Google laid off hundreds of workers in its core engineering division, as well as those working on the Google Assistant and in the hardware division. Amazon also shed hundreds of workers from its Twitch streaming service, Prime Video service, and MGM Studios. Xerox also announced plans to cut 15 percent of its staff.
These layoffs may signal another challenging year for the tech industry, following last year’s significant job cuts amid economic challenges and a decline in the digital advertising market.
In his note, Mr. Citron attributed the layoffs to overhiring and rapid expansion, with Discord growing five times its original size since 2020. As a result, he mentioned that the company had taken on too many projects and worked less efficiently on them.
His explanation mirrors similar statements from other tech CEOs, including Mark Zuckerberg of Meta and Daniel Ek of Spotify, both of whom have implemented layoffs in the past two years.
