Discord, the popular communication platform, is implementing a workforce reduction of 17%, affecting approximately 170 employees across various departments.

CEO Jason Citron stated that the move aims to “sharpen our focus and improve the way we work together to bring more agility to our organization.” Despite the layoffs, Discord’s financial situation does not seem dire, but the company has yet to achieve profitability and is focusing on reinvigorating user growth after a surge during the pandemic.

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Citron acknowledged in a memo to employees that Discord had expanded its workforce too rapidly in recent years, growing by 5x since 2020. This resulted in taking on more projects and becoming less efficient in operations.

The layoffs follow a 4% staff reduction in August of the previous year and align with a broader trend of layoffs affecting the tech industry, with companies like Google and Amazon also implementing significant staff reductions.

Discord, which has received approximately $1 billion in funding and holds over $700 million in cash reserves, is actively pursuing profitability in the current fiscal year. The company has been considering the possibility of going public, following its rejection of a $12 billion acquisition offer from Microsoft in 2021.