Clubhouse will lay off 50% of its staff

Clubhouse, which quickly became popular during the pandemic with its online chat room experience, was confirmed by founders Paul Davison and Rohan Seth to undergo a 50% staff reduction and a company reorganization.

However, despite preparing for a large-scale layoff, the company, which was valued at $4 billion in 2021, said it still has sufficient funds and stressed that there is no immediate pressure to reduce costs, indicating that the layoff is mainly for organizational adjustment and transformation.

In a letter to the internal staff, Paul Davison and Rohan Seth revealed that the company will focus on smaller-scale product development in the future, but did not explain the details.

Clubhouse attracted many users during the pandemic, including Tesla CEO Elon Musk, American talk show host Oprah Winfrey and others who have held online talks through Clubhouse services. There are also many creators, news platforms, and others who use it for topic content discussions or to attract people to interact online through Clubhouse services.

However, as the pandemic eased and various countries relaxed their restrictions, the demand for Clubhouse services also decreased significantly. Similar situations, such as Spotify, Twitter, Reddit, Amazon, and other companies that launched similar services, also faced a sharp decline in users in the post-pandemic era, and then closed the service or transformed it.