Telegram: Where Skills Beat Structure

Founder Pavel Durov shares how he runs the company.

August 25, 2024 • Estimated Reading Time: 3 minutes

Telegram has close to a billion monthly active users, yet the company still doesn’t have any HR department.

There are many things you can learn from their structure and hiring process.

So, let’s uncover them one by one.

How does Telegram hire someone?

  • They have no traditional HR department. Instead of using an intermediary, they hire based on skills (Pavel Durov calls it the ‘decentralization’ of hiring).

  • The company uses contest.com, a platform Telegram created.

  • They host regular coding competitions (every 1-2 months).

  • Top performers from these contests are selected.

  • The best of the best may be invited to join the team (Yes, winning doesn’t guarantee anything).

Company Structure:

  • Extremely lean: Only about 30 engineers

  • Durov is the sole owner, director, and product manager

  • No middle management or bureaucracy

  • Durov works directly with engineers and designers

  • Described as a "Navy SEAL team" - compact and super efficient.

This unique approach allows Telegram to:

  • Maintain a high level of talent

  • Stay nimble and innovative

  • Avoid bureaucratic bloat

  • Make decisions quickly

  • Focus on product quality rather than corporate structure

Durov believes this lean, competition-based hiring model and flat structure contribute significantly to Telegram's ability to innovate rapidly and maintain its independence.

If this works so well for Telegram, why don’t other companies follow the same structure?

Durov explained that public companies often maintain larger workforces to keep stock prices high and appear stable to investors.

Twitter fired almost 80% of its workforce after Elon Musk bought and took Twitter private. (Images are of Pranksters posing as fired Twitter employees)

He shared an anecdote where Twitter executives told him they couldn't downsize drastically because it would scare Wall Street, even if they agreed it could be more efficient.

Essentially, public market expectations often prevent large tech companies from adopting leaner structures like Telegram's.

TL;DR: Running a company with a small, highly skilled team and minimal bureaucracy allows for faster innovation, greater efficiency, and more focused product development.

However, there could be some downsides to this approach too, but that's for a later discussion.

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