, a platform that helps creators generate more income from their work, has laid off 80 employees, or about 17 percent of its total workforce, amid the global economic slowdown and fears of a recession. The company is closing its Berlin office, which housed sales and marketing employees. Patreon is centralizing those operations in the US. A Dublin office will also be closed and Patreon will offer nine engineers there the option of relocating to the US to centralize resources. An office in Porto, Portugal will remain open to support creators and users in Europe.
The layoffs have affected four teams: Go-to-Market, Operations, Finance and People, CEO Jack Conte . Patreon will offer affected workers at least three months of severance pay and those in the US will receive COBRA health care coverage through the end of the year. The company will also offer resources to help them find a new job and will waive a one-year stock award cliff for outstanding stock options.
Last week, Patreon fired five members of their security team for different reasons. Conte said this “was part of a longer-term strategy to continue to spread security responsibilities across our engineering team, bring new areas of expertise to Patreon internally, and continue to partner with external experts.” However, he noted that the company is increasing its investment in security.
Conte wrote that the layoffs are part of a restructuring that will see Patreon pour more resources into its product, engineering, and design departments. However, the company is reducing hiring and the size of its operations.
“I am more certain than ever that the world needs a better economic system for creative people, and Patreon will continue to build that system for creators for decades to come,” Conte said. “However, the pandemic introduced volatility to the broader trend, beginning with a rapid acceleration during the COVID lockdowns. In response, we built an operating plan to support this outsized growth, but as the world began to recover from the pandemic and to suffer from a broader economic downturn, that plan is no longer the right path for Patreon.”
This is just the latest in a long line of recent layoffs at notable tech companies. , , , , , , , and others have downsized or slowed recruiting in recent months.
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