Patreon lays off 20 percent of its workforce

In short: Patreon is laying off about 93 employees, which is 20 percent of its workforce.

What happened

Patreon, the company that helps creators earn money from subscribers, is cutting 20 percent of its workers. The Verge reports this equals around 93 people.

In a memo to employees, Patreon CEO Jack Conte said the company is not making the cuts “because we believe AI replaces humans.” AI is short for artificial intelligence, which is software that can do some tasks that normally need human effort, like writing, summarizing, or helping with coding (think of it like a fast assistant for certain kinds of desk work).

Conte said AI has “fundamentally transformed the tech industry,” including how companies work, build products, and communicate. He wrote that this shift has changed “how we operate and organize.”

Conte also discussed Patreon’s approach in a recent interview on The Verge’s Decoder podcast. He said Patreon is “100 percent embracing” AI tools internally so it can keep serving creators, and he warned the company could fail in a few years if it does not adopt these tools.

This is not Patreon’s first round of job cuts. The company laid off 17 percent of workers in 2022, and it also closed its offices in Dublin and Berlin.

Why it matters

Patreon is used by many independent creators, like writers, podcasters, and video makers, as a way to get paid directly by fans. When Patreon cuts staff, it can affect how quickly the company improves its service and supports creators, even if the core product keeps running.

Source: The Verge AI