After another wave of layoffs at Twitch and Google, it’s now the turn of Discord to be affected.

Back in August, 4% of Twitch’s workforce was fired. But this time we’re talking about a much bigger operation, announced in a meeting and a memo distributed internally by its CEO Jason Citron and obtained by The Verge.

He announced that he had taken the “difficult decision” of having to lay off 17% of the group’s workforce, i.e. around 170 people. “We grew quickly and expanded our workforce even faster, increasing by 5x since 2020. As a result, we took on more projects and became less efficientin how we operated.“, he says.

However, Discord’s financial prognosis is still far from critical. At its inception, it raised 1 billion dollars in funding and has more than 700 million dollars in reserves, according to a person familiar with the situation. However, the service has not been profitable since the golden age of confinement.

A sacrifice therefore seems necessary for Discord’s management, with a lower wage bill theoretically allowing it to concentrate better on essential tasks and try to be profitable once again. Unfortunately, this decision will not be to the taste of the 170 people made redundant.

As compensation, they will still receive five months’ salary, plus an extra week’s salary for each full year worked at Discord. In addition, they will be entitled to three months’ access to outsourcing services, as well as access to the group’s health insurance until the end of the year.

Time will tell whether this sacrifice will have the desired effect, at Discord as at so many other leading tech companies. The least we can say is that their employees are paying the price for the massive and often unnecessary recruitments made during the COVID crisis.