Online membership platform Patreon has slashed about 17 percent of its employees and closed two European offices as the economy slumps.
The company CEO Jack Conte said the layoffs will affect 80 members of staff finance, operations, and other departments.
The platform helps content creators sell their work to subscribers.
However, it has revealed the closure of its Dublin and Berlin offices.
Conte blamed the layoffs on changes in the tech sector and economy which have disrupted the company’s growth goals during the last nine months.
He said: “As the world began recovering from the pandemic and enduring a broader economic slowdown, that plan is no longer the right path forward for Patreon.
“I take full responsibility for choosing that original path forward, and for the changes today, which will be very difficult for our team.”
Last year, the San Francisco-based firm raised $155 million, which brought its total worth to $4 billion.
In September 2020, the value had more than tripled.
However, the corporation, like many others, has reduced spending in response to mounting economic fears.
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Venture capitalists have also reduced new investment, causing many firms to look for measures to save funds.
Patreon was one of the first online platforms to see popularity during the Covid-19 epidemic.
It is because people wanted entertainment, while artists and creators explored means to continue their work and earn a living.
The firm takes a cut of the monthly income made by creators who utilize its platform, along with a payment processing charge.
Currently, Patreon has over 250,000 creators on its platform, who gets funds from more than eight million subscribers.
The firm stated that as part of its restructuring, it intends to have smaller teams for marketing, operations, and recruiting.
In addition, the company will reform its ties with creators, which will be managed by a smaller, centralized workforce in the US.
Source: The Wall Street Journal