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Clubhouse, the social audio app that gained massive popularity during the early days of the COVID-19 pandemic, is now experiencing a significant drop in users. As a result, the company has announced that it will be laying off over half of its total workforce.
In its prime, Clubhouse boasted an impressive user base that included people from all over the world, as well as notable celebrities. The app allowed users to communicate with thousands of people through audio chat rooms, and quickly became a major competitor to other social media platforms such as Twitter.
Clubhouse also attracted significant investor attention during this time, with a number of elite venture capitalists investing in the platform.
However, despite the initial success, the company failed to maintain the buzz that it once had and saw a sharp decline in users over the last two years. CEO and co-founder Paul Davison did not reveal the exact number of employees that would be laid off, but estimates suggest that it could be around 50 or 60.
In a recent blog post, the co-founders explained that the decrease in the app's demand was due to the world opening up post-COVID, making it harder for people to find their friends on Clubhouse and fit long conversations into their daily lives. They also noted that the app needed to evolve to find its role in the world.
As part of the layoffs, all employees being let go will be allowed to keep their work-issued laptops and receive four months of severance pay.
Overall, the news of Clubhouse's significant workforce reduction highlights the challenges faced by companies in maintaining user engagement over a prolonged period of time.
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