Clubhouse, the audio app that enthralled Silicon Valley during COVID lockdowns, revealed on Thursday that it will lay off almost half of its employees.

What you should know: According to CEO Paul Davison, the decision was made to build a smaller team focused relentlessly on product,” rather than due to the economic circumstances.

He went on to say that it wasn’t a financial decision, and that the San Francisco-based company has “plenty of runway.
There are no figures on layoff numbers, but a Clubhouse representative says the company’s headcount has never exceeded 100.
Clubhouse has raised over $300 million in total venture capital funding (most recently in 2021 at a $4 billion valuation spearheaded by Andreessen Horowitz).

In a memo to staff, Clubhouse stated that individuals affected will receive salary through April, four months of paid severance, accelerated vesting, health insurance through the end of August, and assistance with potential visa concerns.