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Patreon lays off 13 percent of its workforce

The company says it's doing well, but that it has to take steps to ensure it doesn't go under.
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Patreon has laid off 30 employees (or 13 percent) of its workforce due to the “economic uncertainty” brought about by the coronavirus pandemic. The subscription content platform told TechCrunch that it has chosen to let employees go, because it’s “unclear how long this economic uncertainty will last” and it has to “prepare accordingly.” Further, the spokesperson said that the decision “was not made lightly and consisted of several other factors beyond the financial ones.”

The platform is just one of the many tech companies hit hard by COVID-19. GoPro had to let 200 employees or 20 percent of its staff go after its sales plummeted in the first quarter of the year: It expects its Q1 revenue to be less than half of what it was in 2019. Crowdfunding website Kickstarter also found that its new projects have dropped by 35 percent year-over-year with “no clear sign of rebound.” It’s reportedly discussing potential layoffs, as well.

Patreon’s situation is a bit different, however, in that it boasts “a significant influx of new creators launching on the platform along with increased financial support from both their new and existing patrons” over the past six weeks. The company said 50,000 creators signed up in March and that their average income was up 60 percent compared to previous months. It explained that while it’s in a strong cash position at the moment, its decision is a move to “ensure that [it] can continue to support creators for many years to come.”

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