Clubhouse, a social audio app founded by Paul Davison and Rohan Seth, has laid off nearly half of its employees.
According to a blog post, the decision was reached by the startup’s co-founders in reaction to shifting client behaviours in a post-COVID era and remote work complications.
Those affected will receive severance pay and continue to receive healthcare coverage for the following few months.
The layoffs come less than a year after the corporation let off a chunk of its workforce as part of another restructuring.
According to the organisation, “a few individuals have decided to pursue new opportunities and a handful of roles were eliminated as part of streamlining our team. We are continuing to recruit for roles in engineering, product and design.”
The social platform, which has received more than $100 million in venture capital and was previously valued at $4 billion by investors such as Andreessen Horowitz, Tiger Global, and Elad Gil, has taken a different tone in today’s massive layoff.
“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,” the co-founders wrote in a blog post.
Unlike many entrepreneurs, the co-founders did not blame the layoffs on the economy. Instead, Clubhouse appears to be responding to the challenges that result from overhiring and a remote work environment, both internally and externally, in running a business and developing something people want.
Clubhouse’s smaller team will now focus on developing “Clubhouse 2.0.”