App Clubhouse lays off more than 50% of its workforce

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App Clubhouse lays off more than 50% of its workforce

Clubhouse, an audio-based social networking app, has revealed that it is laying off more than 50 percent of its workforce. Co-founders Paul Davison and Rohan Seth said the decision was necessary to reset the company and focus on a smaller, product-focused team.

Clubhouse will offer employees a severance pay, equity acceleration, healthcare coverage, and career and immigration support. The company intends to let affected employees keep their company-issued laptops to help them research and apply for new positions.

The founders explain the move in a letter to the employees. In order to fix this, we need to reset the company, eliminate roles and bring it down to a smaller, product-focused team. We arrived at this resolution reluctantly, as we have years of runway remaining and do not feel immediate pressure to reduce costs. But they believe that a smaller team will give us focus and speed, and help us launch the next evolution of the product. The company will pay wages for the rest of April, plus a further four months of severance for all departing employees. Clubhouse is also planning to pay for COBRA through August 31, 2023 for everyone affected, so they can continue to receive full healthcare coverage for themselves and their families during this period.

Despite the layoffs, the two companies maintain that they are still committed to their vision of building a better product. Clubhouse 2.0's vision aims to iterate faster and create the right product.