Audio-based social media app aims to launch the next evolution of its product
TWC – Clubhouse, the audio-based social media app that quickly gained popularity during the pandemic, has announced that it is laying off half its workforce to refocus on product development. In a Thursday email to employees, founders Paul Davison and Rohan Seth stated that the move aimed “reset the company” and take it down to a smaller, product-focused team.
The app, which allows users to host audio-only channels for live conversations, attracted high-profile users such as Drake and Elon Musk and was valued at $4 billion by investors in April 2021. However, its popularity has declined in recent months due to the emergence of competitors such as Twitter Spaces.
In their email, Davison and Seth stated that a smaller team would give Clubhouse focus and speed and help it launch the next evolution of its product. Laid-off workers will receive pay and health care through August and be allowed to keep their laptops.
The founders were reluctant to make the decision, stating that the company had years of runway remaining and did not feel immediate pressure to reduce costs. However, they thought a smaller team was necessary to allow the product to evolve and find its role in the world.
Clubhouse’s LinkedIn page lists 207 employees, and the startup is based in San Francisco.