Another San Francisco-based technology company announced major layoffs and the closure of two European locations in response to the post-pandemic economic slowdown.
The CEO of Patreon, Jack Conte, revealed on Tuesday that around 80 of the company’s 470 employees, or 17 percent, would be laid off due to a change in the IT business over the past nine months.
The company provides a platform for video artists, podcasters, gamers, and other creators to earn cash support from their audience.
Conte added, “Many of you have asked me about layoffs at All Hands meetings as we’ve sought to narrow our focus, and I’ve stated that layoffs would be a last choice.”
Today we are taking this step, and I am very sorry for the creators who are leaving Patreon who are compassionate, creative, and creator-first.
The departments with the greatest number of layoffs were sales, operations, and finance. Those involved received a meeting invitation in response to an email sent in bulk by Conte.
The company was founded in 2013 and has over 250,000 global creators using its platform.
In addition to those laid off on Tuesday, five security team members were also let go last week.
Conte also said that the company’s headquarters in Berlin and Dublin will be closed, but engineering personnel might migrate to the United States.
Following an economic downturn, Patreon CEO Jack Conte announced the firm would lay off 17 percent of its workforce and close two offices.
The company provides a platform for video artists, podcasters, gamers, and other creators to earn cash support from their audiences.
In July, the quantity of rewards to creators declined dramatically.
Employees who are laid off will receive three months of severance pay and other benefits based on their duration of service.
In addition to health care coverage until the end of 2022, departing employees will receive three months of mental health treatment and job search assistance.
Conte concluded, ‘To our teammates who will remain at Patreon: the second Renaissance has already begun, and we have an enormous opportunity to change the course of history for creative people, to give them leverage and control, to give them direct relationships with their communities, and to help them build beyond their wildest dreams.’
In an effort to retain ‘excellent service and support for creators,’ Patreon aims to move the company’s focus to investing in their ‘product,’ as well as engineering and design teams.
Emily Metcalfe, a former member of the Patreon Security Team, initiated the job search for former employees on LinkedIn last week.
Metcalfe wrote, “So, for better or worse, I and the rest of the Patreon Security Team have left the firm.” As a result, I’m seeking for a new Security or Privacy Engineering position and would welcome any connections, suggestions, or employment prospects from my network’s members.
According to Silicon Republic, Patreon stated in 2020 that the company was worth $1.2 billion after receiving $90 million in fresh capital despite suffering an economic upheaval.
True Crime Obsessed has the highest number of Patreon backers.
True Crime Obsessed and The Tim Dillon Show are the podcasts with the most Patreon backers.
250,000 podcasters, video artists, writers, gamers, musicians, and more call Patreon home.
According to Graphtreon, the podcast True Crime Obsessed is currently the top Patreon creator. The podcast hosted by Patrick Hinds and Gillian Pensavalle has received donations from over 47,000 patrons.
The Tim Dillon Show, with 42,600 subscribers, follows the crime podcast. Tim Dillon, a comedian, broadcasts his weekly YouTube program to his 489,000 subscribers.
Maintenance Phase, Chapo Trap House, and Matt and Shane’s Secret Podcast are three further popular podcasts. These three events have between 36,925 and 41,735 active donors.
Meanwhile, The Tim Dillion Show has the greatest monthly earnings at $222,883 each month, placing it in first place.
The Yard Podcast is an Apple-hosted comedy broadcast that generates $170,144 every month. The Chapo Trap House podcast comes in second with monthly earnings of $161,668.
The New York City-based comedic podcast The Cum Boys gets $141,387.
The Tim Dillion program earns the most on Patreon, with $222,883 each month.
The Chapo Trap House and The Maintenance Phase are two additional popular podcasts on Patreon.
Other Silicon Valley corporations have also announced mass layoffs, as the pandemic has reduced profitability and recession fears persist.
Tuesday, Robinhood revealed a 23 percent reduction in its employees. Oracle stated that the corporation intends to lay off thousands of workers.
Shopify, Lyft, Apple, Spotify, and Google are also participating in this trend.
CEO Barry McCarthy, a veteran of the technology industry who assumed his job in February, stated that he expects the changes will “better position the company for long-term success.”
Peloton, an exercise equipment and media company, informed its employees in August that it will eliminate 784 positions, raise equipment pricing, close numerous retail locations, and require all non-remote staff to come to the office by November 14.
The decision was made as the pandemic darling attempts to recoup revenues following a 90 percent drop in its share price amid gym reopenings earlier this year.
CEO Barry McCarthy, a veteran of the time industry who took over the company in February following the turbulent departure of former CEO John Foley, stated that he expects the changes will ‘better position the company for long-term success.’
In the midst of a whirlwind of scandals and falling share prices, Foley resigned.
Notably, his business-wide freeze on new employment and cancellation of a major company holiday party owing to plummeting stock prices occurred while he attended a sumptuous, invitation-only party at the Plaza Hotel in New York City for some of his instructors.
Friday’s layoffs will affect the company’s customer service and distribution teams.
Peloton also announced it would lay off approximately 570 staff in Taiwan and nearly 3,000 in February.