Patreon is laying off 80 people, or about 17% of its workforce, and closing offices in Dublin and Berlin. A message from CEO and co-founder Jack Conte says the cuts are taking place because the company is changing its plans after trying to grow quickly during the pandemic. It is reducing the size of its teams in charge of “operations, recruitment and other internal support functions” as well as its budget for sales and marketing.
The layoffs hit Patreon’s marketing, operations, finance and personnel teams. Workers in the United States will receive three months of severance pay plus an additional two weeks per semester of tenure beyond their first year with the company. European workers get a similar deal, with three months of medical coverage, while Americans will get COBRA until the end of 2022. Conte says he’ll hold “several Q&A sessions” to answer the decision.
In addition to the layoffs, Patreon is closing two of its European offices and giving nine engineers in Ireland the option to move to the United States.
Tuesday’s changes come after Patreon laid off its five-person security team last week. At the time, the company’s head of US policy, Ellen Satterwhite, said The edge the change “would have no impact on our ability to continue to provide a safe and secure platform for our creators and patrons”. Conte also addressed the issue of safety in his Tuesday post, saying the previous layoffs were “part of a longer-term strategy to continue to distribute safety responsibilities across our engineering team. “. He also reiterated that the company continues to work with external security experts and said the new approach will increase the amount Patreon invests in keeping the platform secure.
Patreon is far from the only company to lay off employees amid worries about the economy and rising inflation. Earlier this month, Snap cut about 20% of its workforce and canceled its original shows and other projects. Netflix, Wayfair, Rivian, Ford, Tesla, Shopify, Peloton, and a host of crypto companies also laid off hundreds, if not thousands, of people this summer.