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Patreon Lays Off 17% of Staff, Closes Two Offices in Europe

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Patreon Inc., an online platform that connects musicians and other creators with fans, said it has laid off about 17% of its workforce and closed two offices in Europe amid an economic slowdown.

The company cut 80 positions from operations, finance and other departments, said

Jack Conte,

the company’s chief executive, in a blog post Tuesday. Patreon also closed its Dublin and Berlin offices.

Mr. Conte attributed the layoffs to changes in the tech industry and economy over the past nine months that have upended the company’s growth plans. 

“As the world began recovering from the pandemic and enduring a broader economic slowdown, that plan is no longer the right path forward for Patreon,” Mr. Conte said. “I take full responsibility for choosing that original path forward, and for the changes today, which will be very difficult for our team.”

Patreon declined to comment beyond the blog post.

The San Francisco-based company raised $155 million last year, which brought its valuation to $4 billion. That was more than triple from its value in September 2020. 

Patreon says it has more than 250,000 creators on its platform.



Photo:

Tiffany Hagler-Geard/Bloomberg News

But like many other startups, the company has cut spending amid growing economic concerns. Venture capitalists have also pulled back on making new investments, forcing many startups to search for ways to save cash. 

Patreon was among the online platforms that initially found success during the Covid-19 pandemic as people looked for entertainment while artists and creators looked for ways to continue their work and make money. The company takes a cut of the monthly income earned by the creators that use its platform, plus a payment processing fee. 

Patreon has more than 250,000 creators on its platform supported by more than eight million subscribers, according to the company’s website. 

Patreon said it plans to have smaller teams for marketing, operations, and recruiting as part of its restructuring, Mr. Conte said. The company will also overhaul its partnerships with creators, which will be handled by a smaller consolidated team in the U.S.

Write to Joseph De Avila at [email protected]

Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

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