Patreon Lays Off 20% of Workforce, Citing Market Changes and AI's Impact

Patreon is laying off 20% of its workforce, or 93 people, CEO Jack Conte told employees on Thursday. In a memo to staff that was shared online by the company, Conte said Patreon’s core business is strong but that the platform has to respond to market changes and adjust its cost structure to remain stable, which is why it needs to make the “painful” but necessary cuts.

Conte wrote that “AI has fundamentally transformed the tech industry,” and that the pace of change has “never been more intense.” However, Conte went on to note that Patreon isn’t making the cuts because it wants to replace employees with AI.

“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,” he wrote. “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, nor do they replace the desire for human connection that all of us cherish so deeply. That’s my personal opinion, but more importantly, it’s the foundation of Patreon’s strategy: our product vision and business are both predicated on the value of human creativity and human connection.”

He continued, “AI has fundamentally transformed the tech industry, though, including how we work, how we build products, how we communicate, and more. That does have an impact on how we operate and organize.”

Beyond the headcount reduction, Conte said Patreon is also restructuring how it operates, “flattening” its organizational chart and refocusing teams around its top priorities. Affected employees will receive at least 16 weeks of severance pay, plus an additional week for every year worked, healthcare coverage through the end of the year, and a $1,500 stipend to replace their company laptop.

Last week, Patreon announced that it was partnering with internet infrastructure provider Cloudflare to directly block access to AI bots designed to train their AI models on creators’ work without permission. The company said it had to enhance its efforts on this front because AI scraping has become more sophisticated. The move came as online publishers and creators are grappling with AI companies using their work to train AI models.

Patreon’s latest round of layoffs is the platform’s largest since it cut 17% of its staff back in 2022. During that earlier round of layoffs, Patreon also closed its offices in Berlin and Dublin.