Patreon, a platform for creators that pays for their content, is laying off staff.

In a publicly shared note addressed to Patreon content creators, CEO Jack Conte announced that the creator economy startup is laying off 93 employees, roughly 20% of its workforce.

Conte said in the memo to employees that “the market in which we operate has undergone profound change over the past six months” and that the company needs to reduce costs to “remain a stable and reliable rock for our creators.”

And yes, AI plays a role in that, Conte said.

“AI has fundamentally transformed the technology industry, the pace of change has never been more intense and I expect it to be 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 should not deploy AI tools “in a way that simply creates a bloodbath for the creative people of the world.”

Conte also posted a video on the topic, recommending that AI companies start paying creators.

The ethos of Patreon as a company is based on paying creators. Founded in 2013, it has become a popular platform for creators, such as YouTubers and podcasters, to get their fans to pay for content and community.

The company became a unicorn in 2020 as the creator economy gained momentum and was valued at $4 billion in 2021. Like much of the broader tech and media industries, Patreon has weathered financial headwinds since then. In September 2022, the company laid off 80 people, around 17% of its workforce at the time.

Patreon has faced many new competitors in the space, such as Substack, Beehiiv, YouTube’s own membership tiers, and white-label apps built by creators.

It is not the only company in the creative economy that cuts 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 employees that the company would make changes to its “organizational structure and way of working.” That is, “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 will 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 to deliver new features, improvements to our core experiences, media and community products, and more.”

Read the full memo Patreon sent to its staff:

Hi team,

I have a painful update this morning. I have decided to reduce the size of our team by 20%, or 93 people. All company teammates will receive an email in the next few minutes indicating if their role is affected by this change.

I’ll talk about the reasons for this decision and the logistics of the next day, but before I do, I want to acknowledge how painful it will be for the kind, ambitious, hard-working, mission-driven human beings that make up this company. The people of Patreon are at the core of our ethos and what makes our culture and our business so special. Today will be difficult for many people and, as the person responsible for this decision and the decisions that led to it, I do not take it lightly. Please take the time you need today to support our departing teammates and yourself.

What is changing and why?

There are two key changes we are making today:

1. A staff reduction
2. Change our organizational structure and how we work

I will explain each one below.

1. Staff reduction

Nothing in our core business has changed; remains solid and consistent:

• More than 300,000 creators in almost every country in the world earn money on our platform.
• Creators earn billions of dollars each year on Patreon, and those earnings have continued to show strong, steady growth.
• Creators, members, revenue, and processing volume continue to show strong and consistent growth each month.

On top of that, our transformation to become a community and media network is starting to work:

• Our network now sends 1.5 million new members to creators every month.
• The creators have added approximately 200 million free memberships in the last 3 years.
• Memberships attributed to feeds have increased more than 5x since the launch of our network.

But our transformation will take time. We’re setting our sights on massive problems: the attention economy is being optimized for addiction rather than long-term relationships. Creators are finding it increasingly difficult to reach their followers and build strong communities. Legacy social platforms are locking creators into their systems instead of giving them independence. There is no company better positioned than Patreon to address these issues.

At the same time, the market in which we operate has undergone profound change over the last 6 months. We need to adjust our cost structure to ensure we remain a stable and reliable rock for our creators as we work towards our long-term ambition. The changes we are making today are painful, but they are necessary to ensure that Patreon can take the time necessary to address the above issues from a position of strength.

2. Change our organizational structure and our way of working

We are making a series of changes to our organizational structure and the way we work. Specifically, we are flattening the organization, refocusing teams on our top priorities, and evolving key aspects of our operations so we can adapt more quickly to change.

We are making those changes because with a smaller team, we need a new organizational structure to continue to effectively execute our strategy and priorities, which are not changing. We remain focused on:

• Improve core creator and fan experiences on the platform, and
• Help creators grow their audiences and businesses through our network

Furthermore, I want us to have greater agility as a company. AI has fundamentally transformed the technology industry, the pace of change has never been more intense and I expect it to be even faster. Each of us will play a role in redefining how we work together as the nature of our work continues to change over time.

AI does not replace human creativity

One of the most debated questions in recent months has been whether AI is replacing humans.

To be clear about the impact of AI on today’s decision: we are not making the above changes because we believe AI replaces humans.

The more we have learned to use these new tools, the more clear it becomes that they are not substitutes for the creativity, judgment, detail-orientation, or craftsmanship that our teammates have in abundance, nor do they replace the desire for human connection that we all appreciate so deeply. That’s my personal opinion, but more importantly, it’s the foundation of Patreon’s strategy: our product vision and our business are based on the value of human creativity and human connection.

However, AI has fundamentally transformed the tech industry, including how we work, how we create products, how we communicate, and more. That has an impact on how we operate and organize.

Logistics for today

To our colleagues who are leaving:

In the email you receive from our People team, you’ll find details on next steps, severance packages, and information on how to connect with a member of the People team if you have any questions. You will also receive a separate message from a member of our senior leadership team inviting you to a personal call if you wish.

You’ll have access to your Patreon laptop and Slack until 5pm PT today. Access to all other internal systems will be removed because we want to make sure we protect our creators and their businesses.

I know how important it is for people to be able to say goodbye, which is why we’ve created a #gratitudeandfarewell Slack channel as a place for us all to connect, if you’re comfortable.

Compensation details:

We have prepared a severance package to support affected employees during this transition:

• 16 weeks of pay starting today, including staying on payroll until our August 20th vesting date.
• One additional week of pay for each full year worked at the company.
• Additional cash payment to accommodate a) recent hires who have not reached their 1-year limit and b) older teammates who have not yet received their 2026 upgrade grant.
• Health care coverage through the end of the year for eligible employees and families.
• A $1,500 stipend to replace your company laptop.

Thank you for everything you have given to our creators, fans and this company. Their contributions have made a huge difference in the lives of many people and I am deeply grateful for the energy, artistry and care they have put into their work. That work is now part of Patreon and will continue to benefit creators and their communities for years to come.

To our remaining colleagues:

The focus today will be on our departing teammates, but we have scheduled a short video call for those of us who remain to be together as a team. Tomorrow we will have a question and answer session to review the details of the reorganization and the changes to the way we work. Next week, we will meet in person as planned to delve into our plans for the second semester.

For over a decade, Patreon has been growing and evolving to ensure creators are adequately compensated for the value they create in the world. We have successfully adapted and thrived through recessions, online media chaos, and multiple market shifts. We still come out on the other side stronger than before, and that’s exactly what we’ll do again.

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