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Discord is Laying Off 17 Percent of Employees (theverge.com) 68

Discord is laying off 17 percent of its staff, a move that CEO Jason Citron said is meant to "sharpen our focus and improve the way we work together to bring more agility to our organization." From a report: The cuts were announced today to employees in an all-hands meeting and internal memo The Verge has obtained. They'll impact 170 people across various departments.

Based on Citron's message to employees and my understanding of the business, Discord isn't in dire financial straits, though it has yet to become profitable and is still trying to revive user growth after a surge during the pandemic. In his memo to employees, which you can read in full below, Citron said Discord grew its headcount too fast over the last few years -- an admission that has become quite common among tech CEOs as of late. "We grew quickly and expanded our workforce even faster, increasing by 5x since 2020," Citron wrote. "As a result, we took on more projects and became less efficient in how we operated."

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Discord is Laying Off 17 Percent of Employees

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  • trying to revive user growth after a surge during the pandemic

    That's like trying to revive growth in life variation after the cambrian explosion. Accept the abnormal win and don't expect growth like that again. Be glad you have growth. Be glad you have users. Be glad you're not Myspace.

    • Be glad you're not Myspace.

      Or Twitter where Musky told the banks who bought into his nonsense they won't lose money, but have already lost over $2 billion [businessinsider.com]. This is probably part of the 71% decline in Twitter's value [marketwatch.com] since he took over.

      • It's come out that their plan was to immediately offload the debt onto a bigger sucker. That's why they loaned musk the money not because they thought he was good for it but because they figured they could sell the debt and pocket the fees from loaning it to him which for money that big would have been substantial

        Astonishingly they couldn't find anyone dumb enough to buy the debt from them. I think the numbers were just too big so they couldn't find anyone stupid enough or anyone who was that deep into
    • trying to revive user growth after a surge during the pandemic

      That's like trying to revive growth in life variation after the cambrian explosion. Accept the abnormal win and don't expect growth like that again. Be glad you have growth. Be glad you have users. Be glad you're not Myspace.

      That's not how the modern business world works. The concept of "always more" has firmly taken root within the business sector and EVERY company expects record profits almost every quarter, perhaps with single quarter flatlines when investments are being made. Outside of expansion/investment? ALWAYS MORE ALWAYS! Trying to convince an MBA that something like the pandemic was a once in a lifetime event and you won't be able to replicate it would be like trying to tell a priest that Lucifer was the good guy and

      • The concept of "always more" has firmly taken root within the business sector and EVERY company expects record profits almost every quarter, ...

        It hasn't "taken root" - it's the foundational principle of capitalism itself - expand or die.

        Trying to convince an MBA that something...

        Trying to convince *any* MBA of anything other than their own personal awesomeness or the divinity of Adam Smith is like talking to a brick wall

        • Re: (Score:3, Insightful)

          by rsilvergun ( 571051 )
          I think you're confusing capitalism with colonialism. The people who came up with the idea of capitalism would be appalled by how we're practicing it today. They would have expected a lot more small businesses and a lot more government regulation.

          Government is the referee for capitalism. We took the referee out or if we do have a referee it's more like one from a professional wrestling match where they look the other way when it's convenient and periodically get hit over the head with a metal chair.
        • The concept of "always more" has firmly taken root within the business sector and EVERY company expects record profits almost every quarter, ...

          It hasn't "taken root" - it's the foundational principle of capitalism itself - expand or die.

          It's certainly the concept as it exists today. But we're currently deep into crony capitalism, which is leaning heavily into oligarchy, rather than "free market" capitalism. The "expand or die" concept isn't necessary, it's just a nice convenient excuse to give up on taking anything into account other than purely driving profit ever higher, regardless of what it does to you or your customers long-term.

          Trying to convince an MBA that something...

          Trying to convince *any* MBA of anything other than their own personal awesomeness or the divinity of Adam Smith is like talking to a brick wall

          Having had a few conversations with MBAs over the years? Yup. Fair enough.

          • It's certainly the concept as it exists today.

            Fine by me. I have no interest in inapplicable historical concepts, I'll stick with the "that's how it is now" ones, thx.

  • by Anonymous Coward

    Remember when Musk fired like 90% of all twitter employees?

    He was just ahead of the game. It should be noted, despite the teeth gnashing at the time, twitter has been plugging along just fine despite all the doom and gloom predictions.

    • Re: (Score:1, Informative)

      by quonset ( 4839537 )

      It should be noted, despite the teeth gnashing at the time, twitter has been plugging along just fine despite all the doom and gloom predictions.

      Banks have lost over $2 billion [businessinsider.com] so far on the deal, and Twitter's value has plunged 71% [marketwatch.com]. Twitter has lost 50% of its ad revenue and is still cash flow negative [theguardian.com]. Anti-semitism is flourishing [fortune.com] and that pedo guy is agreeing with it [theguardian.com]. Advertisers are fleeing the dumpster fire [theguardian.com] after he told them to go fuck themselves, and what does Musk do? Blames someone else [reuters.com]. You'l

  • by HBI ( 10338492 ) on Thursday January 11, 2024 @03:44PM (#64150661)

    I don't want fake virtual "gifts" and bright pink begs for them that can't be silenced. I don't want animated emoji. I want reasonably priced chat, voice and video services. I'm willing to pay - i've been paying for it for years now. Why the value proposition keeps getting worse is the question I have. That and the excessive prices have caused me to reconsider upgrading/activating new Discord sites and seeking alternatives.

    Way to take a dump on a gold mine. Greed. The very enshittification that Doctorow was talking about.

  • First Google, now Discord. Somebody should revive fsckedcompany. [wikipedia.org]
  • by Opportunist ( 166417 ) on Thursday January 11, 2024 @04:07PM (#64150773)

    Let's be serious here, I have taken a look at their app. As far as I can tell, there are no ads. As far as I can tell, there is no compelling reason to drop any money on any "server" you have with them unless you're in some way into vanity features. Their target audience is a fairly young market that has little to no money but a considerable amount of time and tech knowledge, along startup companies that need a cheap way to form a "community", who don't have the money and talent to set something like this up on a cloud service, in other words, again not exactly the AAA studios.

    Who the hell is supposed to finance that whole deal?

    • Discord is fairly firmly rooted in the gamer market. Convenient chat while gaming: text, audio or even video (but who looks while gaming). Those are nice features, but I could also use Teams, or Zoom, or a number of other apps. How, exactly, do they expect to make money?
    • Psst they sell user data on the downlow. Also Tencent is a partial owner so whom do you think is Discord's biggest customer?

    • by Luckyo ( 1726890 )

      Investors so far. Their monetizing efforts are three-fold so far:

      1. Attempt at selling games on discord. Mostly failed. Especially in wake of the whole "banned on discord, banned from your games, and we're listening to you and god forbid you say anything against the furries and get reported". No, I'm not joking about that one. I wish I was.
      2. Donation model. They call it "Nitro". You same stuff you get on streaming sites for subscribing to streamers - stickers, emotes, some additional chat features for your

  • It's "more efficient" to have fewer employees doing the same amount of work. It's "more agile" to have to dodge more bodies of overworked wage slaves. I guess I missed the part where TFA justifies the idea that Discord's incompetence at forecasting headcount requirements should be remedied by throwing people under the bus.
    • Okay, I bitched too quickly. Discord does deserve some respect for the severance package they are providing the expendables. But this still does not excuse punishing people for being management stupidity.
      • Sometimes I wish the lameness filter would gag on stupid grammar: But this still does not excuse punishing people for management's stupidity is what I meant to type, not the garble in that last sentence.
  • I had the misfortune of being laid off in September. I was hoping the new year would see a turn around and it hurts to see the job cuts still rolling in. I guess the Fed got what it wanted with the increase in unemployment levels.

    • by Luckyo ( 1726890 )

      In IT, it's more of boomers going into retirement (no investment to fund unprofitable projects) combined with massive overhiring during covid which is being corrected.

  • Twitter laid off 80% of its workforce [cnn.com] and there was never a story on Slashdot. Discord lays off far fewer staff and it gets one. Weird.

Technology is dominated by those who manage what they do not understand.

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