Clubhouse cuts more than 50 percent of jobs ‘to reset the company’

Clubhouse says it is cutting more than half of all jobs and says it is mainly doing this to ‘reset the company faster’. The layoffs would not happen for financial reasons. The company would have too many employees to operate effectively.

Company says he can no longer work effectively, because it would be difficult to communicate with different teams and because rapid changes are difficult because there are many different product owners. These problems are said to have been exacerbated by working from home. “The result is that teams find it difficult to coordinate, people feel blocked by us, and smart, creative people are underutilized,” the company wrote.

That’s why Clubhouse wants to cut more than fifty percent of its jobs “and reduce the company to a smaller, product-focused team.” The company isn’t saying how many people will have to leave, yet Clubhouse told TechCrunch last October to have around a hundred employees. This decision is said to have been taken ‘reluctantly’, because the company has enough cash in hand ‘and does not feel any immediate pressure to reduce costs’.

The Clubhouse app has to ‘change’ because fewer people are on Clubhouse now that society is going outside more after corona. As a result, users would use the app less often and for less time, which means that people who are on Clubhouse can also have and follow fewer conversations. The company says it has a vision for the future, but is not yet sharing it publicly. Clubhouse is an audio chat platform with chat rooms where people can have conversations with each other or listen to the conversations of others.