Discord, the popular messaging app, has announced that it is laying off 17 percent of its workforce, impacting 170 employees across various departments. The decision, communicated in an internal memo by CEO Jason Citron, aims to ‘sharpen our focus and improve the way we work together to bring more agility to our organization.’

While the company is not in dire financial straits, it has yet to become profitable and is still striving to revive user growth after a surge during the pandemic. Citron admitted that Discord grew its headcount too quickly over the last few years, resulting in decreased efficiency in operations.

These layoffs mark the largest workforce reduction for Discord, following a 4 percent staff cut last August. The tech industry as a whole has been experiencing similar trends, with recent deep cuts at companies like Google and Amazon.

Despite the layoffs, Discord has raised approximately $1 billion in funding and holds over $700 million in cash. The company aims to achieve profitability this year and has been considering going public since rejecting a $12 billion acquisition offer from Microsoft in 2021.

Citron’s full memo to employees expressed the company’s conviction in the decision to downsize, emphasizing its long-term commitment to serving users and achieving its business goals.