Fan-funding firm Patreon is laying off 13% of its staff, which according to TechCrunch is 30 employees. The company cited the Covid-19 pandemic as the cause.

“It is unclear how long this economic uncertainty will last and therefore, to prepare accordingly, we have made the difficult decision to part ways with 13% of Patreon’s workforce,” said a spokesperson. This, despite 50,000 new creators joining Patreon in March alone, which the company says “has put Patreon in a strong financial position to help creators successfully manage their creative businesses during this challenging time”. Not strong enough, however, to avoid layoffs.

“This decision was not made lightly and consisted of several other factors beyond the financial ones. Prior to the pandemic, we had completed an in-depth performance review cycle and deployed a new company strategy – both exercises highlighted the need for different skill sets moving forward,” elaborated the statement.

The news comes shortly after reports that Kickstarter is also eyeing potential layoffs as part of a cost-cutting strategy, although how many will depend on how its negotiations with the union representing its staff will go.

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Stuart Dredge

Music Ally's Head of Insight

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