Discord’s Strategic Shift: 4% Workforce Cut Amid New Investments

Chat application Discord has recently laid off close to 40 staff members, constituting 4% of its total workforce, in a move to restructure the company, as per various sources.

A number of former Discord employees have taken to social media platforms like Twitter and LinkedIn to share that they were affected by these layoffs. The cuts have primarily impacted individuals working in the marketing, design, and entertainment partnership departments.

In a statement to Business Insider, the company acknowledged the layoffs and emphasized its commitment to long-term growth.

A spokesperson for the company stated to the publication, “Discord can confirm that roughly 4% of our team has been laid off as part of the reorganization of certain business units. We are making sure to support those who have been affected. Our focus remains on the long-term growth of the business and fulfilling our mission.”

In recent developments, Discord launched a Family Center last month, an opt-in feature designed to keep parents and guardians informed about their children’s activities on the app. Additionally, the company unveiled a function that allows users to stream Xbox gameplay directly to servers and DMs. In March, Discord’s Clyde bot was updated with OpenAI’s ChatGPT technology, enabling users to request suggestions during group chats.

Positive news came last week when investment firm Fidelity increased the value of some of its holdings, including Discord and Reddit. This was a welcome change from June, when Fidelity reduced its valuation of Discord holdings to $1.7 million, a 47% decrease from the original investment of $3.3 million made in 2021.