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Discord announces 17% workforce reduction (170 personnel), note: severance package is pretty decent


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I'll take some of the blame for this for not buying Nitro for the D1P Discord server.

 

WWW.THEVERGE.COM

170 people are being laid off by the popular messaging app.

 

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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.”

 

The cuts were announced today to employees in an all-hands meeting and internal memo I’ve 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.”

 

 

The severance package:

 

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- Five months of salary (plus an additional week for every full year at Discord)

- Five months of benefit continuation

- Three months of outplacement services

- Equity vesting of awards scheduled to vest on Feb. 1, 2024

- Continued access to Modern Health through the end of 2024, and more

 

 

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4 minutes ago, Biggie said:

Is Nitro the only way Discord makes money? @Commissar SFLUFAN

 

In addition to Nitro, Discord's revenue includes "premium" server subscriptions.

 

DISCORD.COM

Today, we’re expanding the availability of Server Subscriptions, allowing existing creators to now earn directly on Discord.

 

DISCORD.COM

Today, we’re announcing the ability for eligible US, EU, and UK-based app developers to monetize their Discord Apps natively on the platform with Premium App Subscriptions.

 

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Discord's really freakin' big revenue-generation problem is that practically all of their revenue is dependent on users giving them money for what amounts to "nice-to-have but certainly not necessary" services while the main core features are completely free of charge.

 

I honestly have zero idea how they solve that conundrum at anything resembling the scale that their investors are looking for, especially to justify its supposed $15 billion valuation.

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3 hours ago, Commissar SFLUFAN said:

I honestly have zero idea how they solve that conundrum at anything resembling the scale that their investors are looking for, especially to justify its supposed $15 billion valuation.

 

That's fucking stupid and is going to be impossible. Aren't investors supposed to actually understand how business works? How are they so bad at their one job?

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Part of me hopes discord fails because people use it as a gaming resource/wiki/forum and it sucks the biggest of donkey balls for that shit. I hate it.

 

I will admit it is good when it comes to live tracking shit like hunt trains in FFXIV but that is the only positive I will say about it outside of being a Skype 2.

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22 hours ago, legend said:

That's fucking stupid and is going to be impossible. Aren't investors supposed to actually understand how business works? How are they so bad at their one job?

 

I'd actually be curious as to the statistical data showing out of all investments ever made generally speaking, how many succeed in proper fashion, meeting targets, etc. I feel like most investors are stupid and fail but that's just me.

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4 minutes ago, Greatoneshere said:

 

I'd actually be curious as to the statistical data showing out of all investments ever made generally speaking, how many succeed in proper fashion, meeting targets, etc. I feel like most investors are stupid and fail but that's just me.

 

Sure seems that way. Except maybe Warren Buffett.

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