Source Code: Your daily look at what matters in tech.

source-codesource codeauthorMegan Rose DickeyNoneWant your finger on the pulse of everything that's happening in tech? Sign up to get David Pierce's daily newsletter.64fd3cbe9f

Get access to Protocol

Will be used in accordance with our Privacy Policy

I’m already a subscriber

Patreon lays off 36 employees despite growth

Patreon lays off 36 employees despite growth

Patreon raises another $155 million, now valued at $4 billion

Patreon recently laid off 36 employees from its product design and engineering teams, its CEO Jack Conte said in a YouTube video he released Wednesday.

Patreon is offering laid-off employees a severance package including three months of full pay, five months of mental health benefits, and health insurance through September, Conte said. The company also removed some stock option restrictions to ensure they get "the full amount of stock compensation," Conte said.

The layoffs come just weeks after Patreon raised a $155 million funding round at a $4 billion valuation. Patreon is doing better than it's ever done before, Conte said in the video.

"We're here for the long haul," he said.

But Patreon is pursuing a new strategy that requires a different composition of employee experience and skills, Conte said.

"We're shifting the way we build products and operate internally," Conte said. "And we needed different sets of experience and different types of expertise in order to make that shift."

Last April, Patreon laid off 30 employees, which represented 13% of its workforce at the time. Patreon cited "economic uncertainty" in light of the COVID-19 pandemic as a driving force behind the layoffs. The company had also recently implemented a new strategy that "highlighted the need for different skill sets moving forward," the company said at the time.

Protocol has reached out to Patreon for comment and will update this story if we hear back.

Latest Stories