The audio-based social networking app Clubhouse has revealed that it will be firing more than 50% of its staff. Paul Davison and Rohan Seth, the company’s co-founders, said in a note to staff that the change was required to reset the business and concentrate on a smaller, product-focused team.
In addition to severance money, equity acceleration, healthcare coverage, and career and immigration counselling, Clubhouse will offer its departing employees. The organisation also intends to let affected workers keep the computers it provided them with so they may continue to look for new jobs and submit applications on them.
The company anticipates being able to iterate more quickly and create the ideal Clubhouse 2.0 product with a smaller, leaner crew.
Davison and Seth assert that the business is still dedicated to its objective of creating a superior product in spite of the layoffs. Clubhouse 2.0’s goal is to iterate more quickly and provide the best product possible.
The decision was communicated by the founders in a letter to the staff. The memo to staff added that it was more than necessary to reset the firm, eliminate jobs, and reduce it to a smaller, product-focused team.
We came to this conclusion reluctantly because we still have years to go and are not under any urgent need to cut costs. However, we think that a smaller team will help us focus, move more quickly, and launch the next iteration of the product.
All departing employees will receive four more months of severance pay in addition to their remaining April salaries from the company.
Additionally, Clubhouse will cover COBRA expenses for all impacted individuals through August 31, 2023, enabling them to maintain complete healthcare coverage for both themselves and their families during this time.