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Social Audio App Clubhouse is Laying Off More Than Half of its Workforce

Written by Abdullah Shahid ·  1 min read >
Clubhouse attracted massive user and investor attention towards the start of the COVID-19 pandemic but has since noticed a significant drop in users

Remember Clubhouse? The social audio app that blew up during the pandemic, well it is the latest addition into the list of companies that carried out a massive employee layoff in 2023. Announcing the news on its blog post, clubhouse said that it is laying off over half of its total workforce.

The application that allows its users to communicate in audio chat rooms with thousands of people gained a significant amount of users during the start of the pandemic. People and even celebrities from all over the world signed up for the application and suddenly every other social media company including Twitter stood up in competition.

Clubhouse also attracted massive investor attention during the same period with an elite stable of venture capitalists investing into the platform.

Despite all glory, the company failed to carry along the buzz that it once had and saw a sharp decline in users throughout the last two years.

Clubhouse CEO and co-founder ‘Paul Davison’ did not reveal the exact number of people to be fired from the company, but estimates suggest that the number could be somewhere near 50 or 60.

These estimations are made from a recent statement that the CEO made in October in which he said that Clubhouse has “about 100 employees and still has years of cash in the bank.”

“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,” said Co-founders Davison and Seth, while writing about the decrease in the app’s demand.

“To find its role in the world, the product needs to evolve. This requires a period of change,” they added thus suggesting an evolution in the services that Clubhouse offers.

According to the blog post, all employees being laid off from Clubhouse will be allowed to keep their work-issued laptops and get four months of severance pay.


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