- Discord laid off 170 people, 17% of staff, blaming overzealous pandemic hiring for inefficiency.
- Cuts span departments like marketing and design as unprofitable Discord “took on more projects.”
- More cost-saving measures are expected industry-wide after overly optimistic growth forecasts.
Discord laid off about 170 people, representing 17% of its staff, in a sweeping cut announced internally on Thursday. CEO Jason Citron attributed the cuts to overzealous hiring that led to inefficiency, echoing explanations from other tech firms.
Massive growth but unprofitable
Discord saw massive growth during the pandemic but still operates unprofitably. The cuts impact departments like marketing, design, and entertainment partnerships.
Last August, Discord laid off 4% or around 40 in a restructuring.
More projects, less efficient
The memo capped a brutal week of tech layoffs, including 1,800 jobs cut by Unity, 500 by Amazon-owned Twitch, and hundreds more across Amazon units like Prime Video, MGM Studios, and Audible.
Citron said Discord “took on more projects and became less efficient in how we operated” after quintupling its workforce since 2020.
The cuts aim to “sharpen focus” and add organizational agility.
Observers expect cost-saving measures like layoffs could continue industry-wide. Discord joins other once high-flying startups forced to tighten belts after overestimating post-pandemic growth trajectories.
