San Francisco-based Patreon is laying off 80 people, or 17% of its staff, according to a blog post by CEO Jack Conte.
The company, which operates a platform where users can pay for subscriptions for content from online creators, is also closing its offices in Dublin, Ireland, and Berlin in a wide contraction of operations.
"We built an operating plan to support this outsized growth, but 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," Conte wrote in the post.
Employees laid off will get three months of severance pay and three months of health care coverage.
The news comes just a few days after it laid off its entire security team of five people, according to TechCrunch.
"The change last week was part of a longer-term strategy to continue distributing security responsibilities across our entire engineering team, bring new areas of expertise into Patreon internally, and continue partnering with external experts," Conte explained in the blog post. "Unfortunately, the change generated concern that we were reducing our security investment, but I wanted to make it clear, especially in light of today’s changes, that we are in fact increasing our investment in security."
