2024-01-13 20:52:02
The year 2024 is off to a very bad start in the tech sector, particularly in companies linked to video games. After the Unity and Twitch groups, Discord announces a restructuring plan. The platform is shedding 17% of its workforce. Since the start of the year, nearly 2,500 jobs have been lost.
Published on: 01/13/2024 – 9:52 p.m.
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« We grew quickly and expanded our workforce even faster. » This is how the layoffs are justified by Discord management. The company nicknamed the “ chat des gamers” separates 170 employees due to poorly managed growth. With 150 million users, this online chat service was valued at $15 billion in 2021, but it still fails to be profitable. Discord separated 4% of its staff in August 2023. The reason is the lack of subscriptions to the group’s paid service. This restructuring is only the continuation of a long series in the industry.
This week, the streaming platform Twitch, best known for broadcasting e-sports competitions and video game-related content, for example, cut 500 jobs. The company is also failing to attract enough paying users, while its parent company Amazon has launched its largest job-cutting campaign in 2023, which is expected to reach 27,000 positions across the company .
New departure plan at Unity, pillar of the video game industry
Unity, an American firm behind one of the two main video game engines, also announced a departure plan. This is important since it concerns nearly 25% of its workforce, or nearly 1,800 employees. “ This decision was not taken lightly », Yet assures the company which is facing its fourth departure plan in a year.
Another group might follow: the Israeli Playtika, specialized in mobile simulation and poker games. According to the Ctech website, it might let go of nearly 400 employees, while the group has increased the acquisitions of several of its competitors in recent years.
Since the start of 2024, more than 2,500 jobs have been lost in the sector.
Read also Music streaming giant Spotify announces the elimination of one in six jobs
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