Social audio app Clubhouse layoffs more than 50 percent of its staff

Story by MobileSyrup •

 In this photo illustration the Clubhouse logo seen displayed on a smartphone screen

Clubhouse has made some major changes to staff, with over 50 percent of employees having been laid off. The decision was announced by Clubhouse founders Paul Davison and Rohan Seth in an email to employees.

The note to staff read, “We’re scaling back our org by over 50% and saying goodbye to many talented, dedicated teammates in the process.” It’s been reported that impacted members of Clubhouse were sent invitations to a one-on-one meeting with managers from their respective departments.

The company’s decision stems from problems as a result of the pandemic, with the company admitting that it became harder for people to find friends on the app and to fit those conversations into their daily lives.

Founders Davidson and Seth would go on to state that in order for Clubhouse to find its role in the world, the product needs to evolve. Evolution requires what they describe as a “period of change.”

Despite the bad news, the company did provide some resources to those impacted. Firstly, salaries will be paid for the rest of April, plus four months of additional severance for all departing employees. Employees will also continue to receive full healthcare coverage for themselves and their families until the end of August.

The remaining workers who were unaffected by the changes were sent an invite for a brief team meeting, most likely to be debriefed on the company’s new directions.

Image credit: Shutterstock

Source: Clubhouse