A sinking company will do everything possible to stay afloat, including laying off staff.
When a company becomes popular and begins to make a lot of profit, it is only right that more hands are employed to handle the traffic.
However, heading south will also reverse the position.
Such is the situation of Clubhouse, a once-skyrocketing social audio app built by Paul Davison and Rohan Seth.
Clubhouse recently laid off more than half of its staff.
According to a blog post, the startup’s co-founders made the decision in response to customer habits changing in a post-COVID world and remote work complexities.
Those affected will receive severance and continued healthcare coverage for the next few months.
The Rise Of Clubhouse
Clubhouse became very popular during the COVID-19 pandemic.
This is because the pandemic made many companies order their staff to work from home and they had to use several channels to communicate.
Channels like Zoom, Google Meet, and Clubhouse were very popular options.
Also, this led to the employment of more staff for the social app.
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However, the social app, backed with more than $100 million in venture capital and once valued at $4 billion by investors, including Andreessen Horowitz, Tiger Global, and Elad Gil, took a different tone in today’s layoff.
“As the world has opened up post-Covid, it’s become harder for many people to find their friends on Clubhouse and to fit long conversations into their daily lives.
“To find its role in the world, the product needs to evolve,” the co-founders wrote in a blog post.
They went on to write that the business has tried to change with its current team size but has been unable to due to the size of the team.
“It’s difficult for us to communicate the strategy to cross-functional teams when it’s evolving by 1% each day,” they wrote.
Clubhouse seems to be responding to complexities that arise from overhiring and a remote work environment.
