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

Clubhouse says it is cutting more than half of all jobs and says it is doing this mainly to “reset the company faster.” The round of layoffs would not happen for money reasons. The company would have too many staff to operate effectively.

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

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

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