Clubhouse Announces Major Restructuring With Over 50% Staff Layoffs

Clubhouse, the live audio app that took the social media world by storm earlier this year, has announced that it will be laying off over 50% of its staff in a major restructuring effort.

In a blog post on Sunday, the company's co-founders, Paul Davison and Rohan Seth, said that the layoffs were necessary as part of a "reset" for the app, which has seen a decline in user growth and engagement in recent months.

"We're making Clubhouse a more focused and streamlined company, which means we need to part ways with some of our talented colleagues," the post read. "This is a tough decision, but it is necessary to position ourselves for the future."

Clubhouse, which allows users to participate in live audio conversations and events, was one of the hottest apps of 2021, with high-profile users and investors flocking to the platform. However, its growth has slowed in recent months, and it has faced increased competition from other live audio apps like Twitter's Spaces and Facebook's Live Audio Rooms.

The company has also faced criticism for its handling of moderation and content moderation, with some users reporting instances of hate speech and harassment on the platform.

In their blog post, Davison and Seth said that the company was committed to improving its moderation efforts and creating a safe and inclusive environment for all users.

"We know we have work to do to make Clubhouse a place where everyone feels welcome and safe," they wrote. "We are committed to doing the hard work to make that a reality."

Despite the challenges it faces, Clubhouse remains a popular platform for live audio conversations, and the company is reportedly exploring new features and partnerships to attract more users and keep up with its competitors.

The layoffs will affect a number of different teams at the company, but Davison and Seth said that they would work to provide support and resources to those affected.

"We are incredibly grateful to every member of the Clubhouse team for their contributions to the company so far," they wrote. "We remain committed to our mission of building a new type of social network, and we believe that this reset will help us get there."