Founders of San Francisco-based Clubhouse, the buzzy, well-funded social audio platform, told workers, “We would rehire any of you in a second if we could.”
of tech workers over the past six months, executives have often cited difficult circumstances: They want to cut costs to weather tough financial futures. Layoffs, these apologetic leaders imply in letters and Zoom calls, are a necessary byproduct of our economic moment.The audio-focused social media app is cutting half of its workforce, according to ato employees from founders Paul Davison and Rohan Seth, in an effort to “reset the company” and “take it down to a smaller, product-focused team.
Clubhouse, where users host audio-only channels for live conversations, launched and quickly went viral during the pandemic. Drake and other prominent hip-hop artistsand showed up to a young producer's showcase. Both Elon Musk and Mark Zuckerberg appeared on the app in February 2021, adding to the network’s buzz among tech’s elite.
“To find its role in the world, the product needs to evolve,” they wrote in the email. “This requires a period of change. Rohan and I have tried to make this work with our current team size, but we haven’t been able to do it effectively. … It’s hard for teams to coordinate, people feel blocked by us, and brilliant, creative people are left underutilized.”
“We arrived at this conclusion reluctantly, as we have years of runway remaining and do not feel immediate pressure to reduce costs,” the email reads. “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 said that laid-off workers will receive pay and health care through August and get to keep their laptops.
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