Patreon lays off 20% of workforce
What's the story
Patreon, the popular content subscription platform, has announced a major layoff, cutting 20% of its workforce. The decision affects around 93 employees. CEO Jack Conte informed the staff about this in a memo on Thursday. He said that while Patreon's core business remains strong, it needs to adapt to market changes and adjust its cost structure for stability.
AI influence
Layoffs not due to AI, says Conte
In his memo, Conte emphasized that the decision isn't about replacing employees with AI.
He said, "The more we have learned to use these new tools, the clearer it has become that they are not substitutes for the creativity, judgment, detail orientation, or craftsmanship that our teammates have in spades."
He added that "AI has fundamentally transformed the tech industry," including how we work and communicate.
Restructuring plans
Restructuring and severance packages
Along with the layoffs, Conte also announced a restructuring of Patreon's operations. This includes "flattening" its organizational chart and refocusing teams on top priorities.
Affected employees will be given at least 16 weeks of severance pay, plus an additional week for every year worked.
They will also get healthcare coverage until the end of the year and a $1,500 stipend to replace their company laptop.
AI protection
Patreon partners with Cloudflare to combat AI scraping
Last week, Patreon announced a partnership with internet infrastructure provider Cloudflare.
The collaboration aims to directly block access to AI bots that train their models on creators' work without permission.
The move comes as online publishers and creators are struggling with AI companies using their work for training purposes.