Clubhouse, which became popular during Covid times, now lays off more than half of its workforce 

By Ankita ChakravartiClubhouse, the popular audio app, which became immensely popular during Covid times, is now laying off employees. The app’s co-founders have sent a letter to the employees informing them that the company is laying off more than 50 per cent of its workforce. The founders listed that ever since the world opened up after Covid pandemic, very few people have used the Clubhouse app.

“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. This requires a period of change,” the founders Paul Davison and Rohan Seth wrote in the memo.

During the Covid times, people turned to technology to connect with their friends and relatives as physical meetings were banned. That is when the community apps like Clubhouse gained prominence. For those unaware, Clubhouse is an invite-only app that lets its users share audio updates, posts and hold audio-only conversations among their peers. The app was launched in 2020 and it was exclusive to the iOS users only. However, over the next couple of months, the app was made available for Android users too.

The founders said that they need to”reset” the company in the post-COVID era.They stated that a smaller, more focused team is necessary to make the necessary changes to the product.

“In order to fix this we need to reset the company, eliminate roles and take it down to a smaller, product-focused team. We arrived at this conclusion reluctantly, as we have years of runway remaining and do not feel immediate pressure to reduce costs. But we believe that a smaller team will give us focus and speed, and help us launch the next evolution of the product,” the memo read.

The buzz around the app led to the emergence of similar features from other companies, such as Twitter Spaces, Facebook Live Audio Rooms, and Spotify Live.

However, Clubhouse has struggled to maintain its relevance since then, with Twitter Spaces becoming the more sought after application in the audio-only space. In response to the changing tech landscape, Clubhouse launched a feature called “Houses” in August 2021, which provides a dedicated chat space where users can “make new friends through their existing friend groups in a more intimate setting.”

Davison and Seth believe that a smaller, more focused team will help them iterate faster on the details and build the right product. They have a clear vision for Clubhouse 2.0 and are committed to honoring their teammates who helped them get this far.