Clubhouse is struggling to retain users.
Clubhouse, the online social audio platform that rose to fame during the peak of the COVID-19 pandemic, has laid off 50% of its total workforce.
Clubhouse, the online social audio platform that gained massive popularity during the peak of the COVID-19 pandemic, has announced that it is cutting down 50% of its total workforce.
The app, founded by Rohan Seth and Paul Davison, saw a surge in usage as people were forced to stay at home during the pandemic. However, as the world begins to return to normal, the founders have seen a drop in users.
“As the world has opened up post-Covid, it has been difficult for many people to find their friends at the clubhouse and to incorporate long conversations into their daily lives. To find its role in the world, the product needs to evolve. This requires a period of transition,” said the founders.
Clubhouse “is saying goodbye to many talented, dedicated associates in this process,” he said.
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Furthermore, he stated that this was a necessary change and that he was “deeply sorry for having to do this.” Affected employees will receive severance pay and healthcare coverage for a few months, and the company will pay full wages of affected employees until August 31, 2023, in addition to four months of severance.
Clubhouse will also allow affected employees to use company-issued laptops for research about the new roles, among other things.
“To fix this we needed to reset the company, eliminate roles and move it to a smaller, product-focused team. We came to this conclusion reluctantly, because we have years of runway left and the cost We don’t feel immediate pressure to downsize. But we believe a smaller team will give us focus and speed, and help us launch the next evolution of the product,” the founders said.
Rohan Seth and Paul Davison are said to be making Clubhouse 2.0, which will address the shortcomings of the first app.
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