The clubhouse lays off 50% of the entire workforce; Here’s what the founders had to say
Clubhouse, the online social voice platform that gained massive popularity at the height of the COVID-19 pandemic, has announced that it is cutting 50 percent of its entire workforce.
Founded by Rohan Seth and Paul Davison, usage of the app increased as people were forced to stay at home during the pandemic. However, as the world has started to return to normal, the founders have noticed a decrease in users.
“As the world has opened up post-Covid, many people find it harder to find their friends at the Clubhouse and fit long conversations into their everyday lives. To find its role in the world, a product must evolve. This calls for change, the founders said.
The clubhouse “will be saying goodbye to many talented, dedicated teammates in the process,” they added.
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They further stated that this was a necessary change and that they “deeply regret doing this”. The employees will receive severance pay and health care coverage for a few months, and the company will pay the full salary of those affected until August 31, 2023, in addition to the four-month notice period.
Clubhouse will also allow affected employees to continue using company laptops to research new roles and other issues.
“To fix this, we need to reset the company, eliminate roles and move it to a smaller, product-focused team. We came to this conclusion reluctantly because we have years of runway left and don’t feel immediate pressure to cut costs. But we believe that a smaller team will give us focus and speed and help us to launch the next evolution of the product”, stated the founders.
Rohan Seth and Paul Davison are said to be building Clubhouse 2.0, which fixes the shortcomings of the first app.
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