In an effort to remain relevant, Clubhouse fires half of its staff
Clubhouse is a social media platform. It was introduced for real-time audio communication back in 2020. The technology at the time gained so much traction that rivals like Facebook and Twitter rapidly unveiled their own live audio platforms. It’s been three years since the launch, but the platform is still having trouble being competitive. Some recent pieces of information suggest that Clubhouse is currently letting go of half of its workforce.
How Clubhouse turned from being a hit to a failure
Paul Davison and Rohan Seth, the founders of Clubhouse, said in a letter posted this week (via The Verge) that they are reducing the company’s personnel by over 50%. The layoffs will include several talented and dedicated teammates. The decision is crucial to maintain Clubhouse’s relevance in the post-pandemic era.
If we refer to the COVID-19 pandemic as the biggest reason behind Clubhouse’s success, then it won’t be wrong. Since platforms like Clubhouse were a safe place for communication while staying at home during the lockdown. The platform was even used by celebrities by the time it was introduced which attracted many users to download the app.
In addition to this, Clubhouse, however, had to deal with the opposition. Twitter revolutionized the game with Spaces. It introduced a live audio feature that operates similarly to Spotify but is integrated into the main Twitter app. On the other hand, the rivals like Spotify Live never really took off.
Relaunching the app
The creators of Clubhouse admit that things have changed quite a lot after the COVID-19 pandemic.
The business claims that the layoffs are part of an effort to restart the app just like in 2020 with a small team. The impacted employees can keep their work laptops and will be compensated for the following four months.
The company states that we are confident that a smaller, leaner workforce will enable us to create the ideal product. In this way, we will be able to pay tribute to the teammates who have helped us reach where we are today. We have a clear vision for what Clubhouse 2.0 will look like. What Clubhouse intends to change with its upcoming edition is not yet clear. If Clubhouse 2.0 will be as successful as the first version was in 2020, only time will tell.
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