Discord Announces Workforce Reduction Amidst Industry-Wide Layoffs

In a move reflective of the challenges facing the gaming industry, Discord, the popular gaming-focused social platform, has confirmed a significant workforce reduction, cutting 17% of its staff. This decision comes amid a broader trend of layoffs affecting various gaming companies, with Twitch and Unity also recently announcing sizable cuts to their teams.

As reported by The Verge and later confirmed by IGN, Discord CEO Jason Citron informed employees of the workforce reduction through a companywide meeting and internal memo. The cuts are set to impact 170 employees across the organization, reflecting the platform’s effort to “sharpen our focus and improve the way we work together to bring more agility to our organization.”

Citron’s memo acknowledged the difficulty of the decision, stating, “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.” The company cited the need to confront “hard truths,” including a fivefold growth since 2020, leading to increased projects and reduced operational efficiency.

Discord has committed to supporting affected staff during this challenging time. The support package includes a “sizable runway” for the departing employees, encompassing five months of salary and additional pay for each full year served, as well as five months of benefit continuation. The company is also providing access to Modern Health through 2024, emphasizing a commitment to the well-being of its former team members.

Discord’s announcement adds to a series of layoffs that have marked the beginning of the new year in the gaming industry. Earlier reports detailed cuts at Twitch affecting 500 team members, while Unity faced significant workforce reductions, impacting approximately 25% of its employees. These developments highlight the challenges and changes occurring within the gaming landscape as companies reassess their structures and priorities.

The gaming industry’s turbulent start to the new year is underscored by Discord’s decision to streamline its workforce. As companies grapple with growth challenges and operational efficiency, workforce reductions have become a recurrent theme. Discord’s commitment to supporting affected employees demonstrates a conscientious approach to navigating these changes, and the broader industry will be closely watching how these adjustments impact the company’s trajectory in the evolving gaming ecosystem.