Discord lays off 170 people, becomes latest company to say it grew too much during the pandemic and now needs to be 'more agile'

SoftwarePlatformsDiscord lays off 170 people, becomes latest company to say it grew too much during the pandemic and now needs to be ‘more agile’When you purchase through links on our site, we may earn an affiliate commission.Here’s how it works.

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(Image credit: Getty Images)

An illustration picture taken on March 2, 2023 in Moscow shows a smart phone screen bearing the Discord social network application logo. (Photo by Kirill KUDRYAVTSEV / AFP) (Photo by KIRILL KUDRYAVTSEV/AFP via Getty Images)

Just one day after streaming service Twitch announced that it is laying off 500 employees, Discord has joined the parade: A report fromThe Vergesays the company is cutting 170 employees, representing 17% of its workforce. A Discord representative confirmed with PC Gamer that The Verge’s report is accurate.

“Today, 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,” Citron said. “This is what largely drove the decision to reduce the size of our workforce.

“While difficult, I am confident this will put us in the best position to continue building a strong and profitable business that delivers amazing products for our users and supports our mission for years to come.”

Discord doesn’t appear to be facing any immediate financial difficulties. The Verge report says the company has raised roughly $1 billion in funding and is currently sitting on more than $700 million in cash. But while the company’s valuation has skyrocketed—aCNBCreport pegged it at $15 billion in 2021 following a $500 million funding round, up from a $3.5 billion valuation in 2020—profitability has apparently remained elusive. One source told The Verge that Discord hopes to become profitable this year.

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