Patreon laying off 20% of staff

Patreon is laying off 93 employees, about 20% of its staff, CEO Jack Conte announced in a publicly shared note addressed to creators on Wednesday. Conte said in a separate memo to staffers that the market in which the company operates has undergone profound change over the last six months and that the company needs to cut costs to remain a stable, dependable rock for creators. AI has fundamentally transformed the tech industry and the pace of change has never been more intense, Conte said in the memo. However, Patreon emphasized that the layoffs were not because the company thinks AI can replace humans or creativity. Conte also published a video recommending that AI companies start paying creators. Following the layoffs, the company will make changes to its organizational structure and how it works, namely by flattening teams. Patreon's core business is healthy and strong and the company will continue shipping new features and improvements, Conte said in the post shared with creators. The company was valued at $4 billion in 2021 and laid off 80 people, about 17% of its staff, in September 2022. Other creator economy and tech companies have also cut staff this year.