Patreon lays off 13 percent of its staff despite pandemic-induced growth

Shawn Knight

Posts: 13,152   +132
Staff member

While many are suffering through economic hardships during Covid-19, some businesses are actually in the rare position to benefit from the pandemic. Such appeared to be the case with online membership platform Patreon last month when the company said more than 30,000 new creators had joined its platform in the first three weeks of March alone.

Patreon said it had also witnessed a slight elevation in the number of pledge deletions but noted that it wasn’t nearly enough to offset the increasing number of new pledges coming in.

In a recent statement to TechCrunch, Patreon said it added a total of 50,000 new creators through the end of March and that the average income for creators was 60 percent higher than previous months. The recent surge, combined with years of continuous growth, has put Patreon in a strong financial position, a spokesperson said.

Despite its strong cash position, Patreon ultimately said it is unsure how long the current economic uncertainty will last. As a result, the leadership team decided to part ways with 13 percent of Patreon’s workforce.

The spokesperson said the decision was not made lightly and consisted of several other factors beyond just financials. “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.”

Patreon believes it will emerge from the layoffs as an even stronger company, both financially and strategically.

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bviktor

Posts: 398   +701
I honestly think many companies use the current situation as an excuse to get rid of slackers/unwanted people they've been wanting to fire long ago. My company included. They fired roughly 20% of the workforce, and many on that list were known to be mostly useless to the company for quite a while.
 

Uncle Al

Posts: 8,014   +6,783
Just another good example of Money over Manpower and the convenience of getting rid of the dead wood is undeniable to say the least, but in some cases it is outright criminal; for example, how many medical groups & hospitals are laying off staff because it is deemed "unprofitable" as well as our Govt. not mandating keeping staffing levels in order to contend with the demand. All in all it just goes to show what happens when any organization make the priority the all mighty dollar.
 

Markoni35

Posts: 1,066   +433
Pity that government institutions and companies aren't laying off useless people. That would probably comprise about 60% of the employees.