Published
Thu, Sep 15, 2022, 11:25
- In a note sent to staff yesterday, CEO Jack Conte said the plan introduced to handle rapid growth during the pandemic is no longer suitable.
Creator subscription service Patreon has laid off 80 employees, roughly 17 percent of its global staff.
The news landed yesterday, September 13th, initially via a company-wide email and later in a post on Patreon's blog by CEO and cofounder Jack Conte. In addition to the lay-offs, the Berlin and Dublin offices have been shut, though the Porto office will remain. In the post, Conte said the decision was due to the volatility of the Covid-19 pandemic. During the first lockdowns, Patreon grew massively as creators searched for new revenue streams.
"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," wrote Conte.
He added: "I take full responsibility for choosing that original path forward, and for the changes today, which will be very difficult for our team."
Last week, Patreon let go of five members of its security team, which Conte said "stemmed from a different set of reasons." He was also keen to point out that, contrary to public opinion, this move represented more investment in security.
Founded in 2013, Patreon enables people to make a living by building a community of subscribers for their projects. According to the latest statistics, the company boasts 210,000 creators and six million patrons. These creators have made an estimated $2 billion. Many electronic artists use the service, including Martyn, Mark de Clive-Lowe and the Rhythm Section label.
Patreon’s downsizing comes amid a worrying time for the creator economy. So far in 2022, companies like MasterClass (20 percent), Jellysmack (8 percent), Picsart (8 percent) Lightricks (12 percent) and StreamElements (20 percent) have all let staff go, TechCrunch reports.
Read Conte's statement in full and a more personal note on Instagram.