SAN FRANCISCO: Amid tough global market conditions, US-based Patreon has announced that it is laying off 80 people, or about 17 per cent of the staff.
CEO Jack Conte said that he is deeply sorry to the kind, talented, creator-first people who will be leaving Patreon.
"Today we will lay off 80 Patreon teammates from our Go-to-Market, Operations, Finance, and People teams, with roughly 17 per cent of our team leaving the company. Before I get into the reasons for this decision, I want to recognise that today will be difficult for much of our team and even harder for those leaving Patreon," Conte wrote in a letter to the staff.
"Over the last 9 months, we have seen the tech industry -- and the whole economy -- change considerably. Many of you have asked me about layoffs at All Hands meetings as we have set out to tighten our focus, and I have said that layoffs would be the last resort. Today we are taking that step " he added.
Patreon powers membership businesses for content creators with a subscription-style payment model. Using Patreon, fans can pay their favourite creators a monthly amount of their choice in exchange for exclusive extra content.
Conte mentioned that the pandemic introduced volatility to the broader trend, starting with a rapid acceleration during Covid lockdowns.
"In response, we built an operating plan to support this outsized growth, but as the world began recovering from the pandemic and enduring a broader economic slowdown, that plan is no longer the right path forward for Patreon," he said.
"I take full responsibility for choosing that original path forward, and for the changes today, which will be very difficult for our team," he added.
The company is also planning to restructure its marketing efforts under a smaller, consolidated team in the near-term, focused on updating the brand, developing creator resources, and launching new products.
It will also restructure its Creator Partnerships efforts to take a more scaled approach with a smaller, consolidated team in the US.
(With online desk inputs)