Clubhouse, the online social audio platform that gained massive popularity during the height of the COVID-19 pandemic, has announced that it is cutting 50% of its total workforce.
The app, founded by Rohan Seth and Paul Davison, enjoyed a surge in usage as people were forced to stay at home during the pandemic. However, as the world has begun to return to normal, the founders have noted a decline in users.
“As the world has opened up post-Covid, it’s become harder for many people to find their friends on Clubhouse and to fit long conversations into their daily lives. To find its role in the world, the product needs to evolve. This requires a period of change,” the founders said.
Clubhouse will be “saying goodbye to many talented, dedicated teammates in the process,” they added.
Further, they noted that this was a necessary change and that they are “deeply sorry to be doing this.” The affected employees will get severance pay and healthcare coverage for a few months, and the company will pay the full salary of those impacted until August 31, 2023, in addition to four months of severance.
Clubhouse will also let the affected employees keep using their company-issued laptops for research about new roles, and more.
“In order to fix this we need to reset the company, eliminate roles and take it down to a smaller, product-focused team. We arrived at this conclusion reluctantly, as we have years of runway remaining and do not feel immediate pressure to reduce costs. But we believe that a smaller team will give us focus and speed, and help us launch the next evolution of the product,” the founders stated.
Rohan Seth and Paul Davison are said to be building Clubhouse 2.0, which will address the shortcomings of the first app.
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