Patreon, a platform for creators that paywalls their content, is laying off staff.
In a publicly shared note addressed to Patreon’s content creators, CEO Jack Conte announced that the creator-economy startup is laying off 93 employees, about 20% of its staff.
Conte said in the memo to staffers that the “market in which we operate has undergone profound change over the last 6 months,” and that the company needs to cut costs to “remain a stable, dependable rock for our creators.”
And yes, AI does play a role in it, Conte said.
“AI has fundamentally transformed the tech industry, the pace of change has never been more intense, and I expect it to get even faster,” Conte said in the memo.
However, Patreon emphasized that these layoffs were not because the company thinks AI can replace humans or creativity.
In March, Conte told Business Insider that while AI can help people create “beautiful things,” companies shouldn’t roll out AI tools “in a way that just creates a bloodbath for the world’s creative people.”
Conte also published a video about the topic, recommending that AI companies start paying creators.
Patreon’s ethos as a company is based on paying creators. Founded in 2013, it’s become a popular platform for creators — like YouTubers and podcasters — to have fans pay for content and community.
The company became a unicorn in 2020 as the creator economy picked up steam, and was valued at $4 billion in 2021. Like much of the broader tech and media industries, Patreon has weathered financial headwinds since. In September 2022, the company laid off 80 people, about 17% of its staff at the time.
Patreon has faced many new competitors in the space, like Substack, Beehiiv, YouTube’s own membership tiers, and white-label apps made by creators.
It’s not the only company in the creator economy cutting staff. In February, creator-commerce platform LTK cut staff, and other tech companies, including Meta, Snapchat, and LinkedIn, have also laid off workers this year.
Following this recent round of layoffs, Conte said in the memo to staffers that the company would make changes to its “organizational structure and how we work.” Namely, by “flattening” the company’s teams.
The company will continue to focus on its products for creators.
“Patreon’s core business is healthy and strong, and we’re going to be a rock for creators for decades to come,” Conte said in the post shared with creators. “We’re not changing our roadmap or priorities. Patreon will continue shipping new features, improvements to our core experiences, media and community products, and more.”
Read the full memo Patreon sent to its staff:
- A workforce reduction
- Changing our organizational structure and how we work
- More than 300,000 creators in nearly every country in the world are earning money on our platform.
- Creators are earning billions of dollars each year on Patreon, and those earnings have continued to exhibit steady, strong growth.
- Creators, members, revenue, and processing volume continue to show strong, consistent growth every month.
- Our network is now sending 1.5M new members to creators every month.
- Creators have added ~200M free memberships over the past 3 years.
- Feed-attributed memberships are up more than 5X since our network launch.
- Improving core creator and fan experiences on the platform, and
- Helping creators grow their audiences and businesses through our network
- 16 weeks of pay starting from today, including remaining on payroll through our August 20th vesting date.
- One additional week of pay for every full year worked at the company.
- Additional cash payment to accommodate a) recent hires who haven’t reached their 1-year cliff, and b) more-tenured teammates who haven’t yet received their 2026 refresh grant.
- Healthcare coverage through the end of the year for eligible employees and families.
- A $1,500 stipend to replace your company laptop.
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