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Patreon Lays off 17% of Staff (patreon.com)
492 points by jcalabro on Sept 13, 2022 | hide | past | favorite | 438 comments



This bit from the employee announcement about how they're handling equity vesting [1] is worth highlighting as a pretty classy move, all things considered:

> We’re waiving the one-year equity vesting cliff for all departing employees so that everyone has an opportunity to be a shareholder, regardless of your tenure. [...] All departing teammates will qualify for an extended option exercise period of 5 years, and we have extended it to 7 years in regions where we are legally able.

It must be jarring to be on the receiving end of a layoff. In the grand scheme of things, a laid-off employee surely has bigger things to worry about... but I still think what they did here with the equity, especially the option exercise period, is a nice touch. Not many companies do this sort of thing, but they should.

[1]: https://blog.patreon.com/a-note-from-jack


They say there's 3 months of pay, healthcare, mental care until the end of the year too. And they contracted a placement company to hook people up with new jobs.


Some of this is because of the WARN Act in California [0], which requires 60-day notice before any mass layoff. Employers can also fulfill the requirements of this mandate by letting employees go now but having their actual termination date 60+ days in advance. I've been survived a few layoffs that work this way.

Good for Patreon to go beyond the 60-day mandated period though

[0] https://edd.ca.gov/en/Jobs_and_Training/Layoff_Services_WARN


WARN Act is federal law not CA Law. I highlight this because there is a belief that only CA has employment protections laws, and while CA does have more of these; other parts of the US also have employment protection laws often times not really that much different than CA


I think WARN is 60 days at the federal level and some states like CA and NY extend it to 90 days.


Both CA and Federal is 60 days, the main difference is CA requires employers with over 75 employee's federal is 100, and CA includes Part Time employees in the count Federal is Full Time workers only


> I've been survived a few layoffs that work this way.

How many times have you been laid off?!


There are probably a large number of HN readers that have weathered the dotcom bust, the 2008 financial crisis, and the 2022 financial crisis. If you were born 1980-ish and you haven't been laid off 3 times, congrats!


Or just work in startups.

It's pretty easy to get laid off a lot if you work in startups. You join and know there is a ticking clock in the background. If you don't, you probably should.

Every startup thinks they are the 1 out of 10 (because why wouldn't they, you have to.)


I agree, I have never actually been fired from a collapsing company, but as an intern I have been in the meeting room when a company was folded, and I have also seen a few companies collapse after I left. I'm a realy early guy, I tend to leave when the timesheet comes, so there is probably some runway left when I leave.


I was born in the 60s and haven't been laid off yet, including during the dotcom bust, all while working for 12+ companies in my career. The bust was the worst, though, our company went through 7+ layoffs and we were decimated, and no one did any real work after a while. Fingers crossed that I can keep this trend until retirement!


Being laid off twice was a rewarding experience both financially and for my career. It forced me to step out of my comfort zone. Now, being outside my comfort zone is my comfort zone.

In the first layoff I knew the company was planning a round in the next 18 months and I'd been there 6 years. I waited around for the payout. Layoff law in Australia is more favorable to the employee, the payout was 10 months. I took a week off before starting the next job on a substantial salary increase.

The most important is not to take it personally as a failure. That can mess with self confidence and interview performance and general well being. At my HR interview they had the team there and some "transition coach" they seemed worried about us. I was actually thrilled as I planned to leave anyway.


>"There are probably a large number of HN readers that have weathered the dotcom bust, the 2008 financial crisis, and the 2022 financial crisis."

The "2022 financial crisis"? That's not even a thing. Slowing economic growth and even a recession, should we enter one later this year does not constitute a "financial crisis."


By most historical measures of recession, we're already in one. This redefining of what constitutes a recession is a recent phenomena, and has political roots, not financial ones.


>"This redefining of what constitutes a recession is a recent phenomena, and has political roots, not financial ones."

There has been no "redefining" nor is it a recent phenomenon nor does it have political roots. You are wrong on all accounts.

It doesn't have political roots. The National Bureau of Economic Research(NBER) is a private, non-profit, non-partisan research organization with an aim is to promote a greater understanding of how the economy works.

The nonpartisan panel, which was established in 1978 by former Ronald Reagan adviser and NBER president Martin Feldstein, has gone out of its way to keep politics out of the process.

The committee meets in secret and doesn’t announce its gatherings in advance or even in retrospect, unless there’s a press release declaring a formal decision.

And it typically takes the panel about a year to decide on a recession call, though some decision have been made in a few months while others have taken almost twice as long. That’s almost always well after a recession has been widely recognized by Wall Street.

The committee has never reversed a call.

Rather than two negative GDP readings, the NBER is looking for a substantial decline in activity over a sustained period of time. The committee sets dates of the peaks of economic activity and troughs based on six monthly data series, including nonfarm payrolls, personal consumption spending and industrial production.


It's going to get worse. Hard to have lived through it when it's not over yet though.


Again, a recession is not at all the same thing as a financial crisis. This is the thing I was commenting on. There is no consensus that we are even in one. Recessions are always backward looking.

It's pretty spectacular though that not only have been able to declare that were in one but you are also able to comment with confidence on how bad it's going to be be.


> If you were born 1980-ish and you haven't been laid off 3 times, congrats!

This depends on where you worked. Most of the developers I know were around for the dotcom bust, but only 2 have experienced a layoff. But none were working for dotcom companies.


This, I've been laid off about 6 times, only once because of my own accord (and I freely admit my fault there). I've left a company 2x that count. I started my career in 1999. What a year to start...


In 23 years you have worked at 18 companies? Has this hurt you during interviews?


Very much so. I've had to explain that some of them were just contracts, some of them cease to exist anymore, and some went through layoffs. The reality is it's more like 13 companies but yeah.


Don't sweat it. Most human resource departments take their methods from Kafka's The Trial. The more you look the better you get at it, the easier the brutal process of some employers' hiring processes become. Fire and forget. The more applications you complete, the better your chances of getting hired, and once hired, the longer you work, the further disappointment retreats in your rearview.


Yup! Exactly. It’s a numbers game. I’ll never work at a FAANG probably because of it but that’s ok. I’ve carved out a pretty cool career AND I do side projects and games so it’s fine.


I started in 2020 :) officially. I technically did side things throughout HS, but officially looked for jobs in 2020. Was pretty miserable.


Same


Yeah, 5 or 6 times. Happy to be, right now, a one-person IT department at a "small" company. My way is the way.


I was born mid 1960's-ish and have lucked out; only laid off once. But I well remember all of those crises.


Been through all of them.

Saw the writing on the wall for each of those and left before I was the one laid off.


Ah, the safety of grad school...


I joke with my friends in other industries about how often I have been laid off. For me, it's been uh...5 times? Maybe 6. I am probably forgetting them. None of them were very small but like usual characteristically overextended. One company I survived 4 full rounds of layoffs before getting axed. Another one I survived 3.

It's the nature of playing around in the high stakes startup world. As I've gotten older I've found more stable companies. But it was quite funny coming home once every few years to tell my girlfriend I was laid off again and then picking up another job a week later.


During the dot com downturn the consulting company I was at went through 2 or 3 rounds of layoffs. Then in the 2008 fallout, there was another round. If one is lucky enough to survive them, they could be witness to many but not be a recipient of any.


None, that's how I survived them ;)

I worked in an industry that's highly cyclical and had major consolidation over the last decade (HDD/SSD storage). We bought several companies and they would do layoffs roughly every 18 months or so.


Unless you're in government/health. You're going to lucky not to be laid off multiple times in your career and if you're not laid off at all in your career, consider yourself extremely lucky.


I’m not quite sure that’s true


Decency demonstrated, and hopefully recognized at large regardless of the criticisms of the business strategy and execution.


I agree. Tech companies should never really break off with former employees. Any former employee is a future potential employee that you can re-recruit when the time comes. Also, talent is difficult to find. Which makes people the center. Whatever you build, you will build it with people. So you need people. Be them new employees, be them former employees.


> Any former employee is a future potential employee that you can re-recruit when the time comes

Not only that, all former employees are de-facto "background check references" / "evagenlists" / "detractors" of your company. Forever! (well, not exactly forever... but close enough)

I can't recall a single year over the last 10 years where younger engineers, cousins, nephews or friends have asked me about the 2 companies I worked at before.

And boy, have I been candid.

Talked a very good friend of mine from joining Amazon for an offer he got making nearly 3 times much I did. All because of "decency" (or lack thereof) of a company.


Seems Amazon needs to be careful about this, too.

https://retailwire.com/discussion/there-might-soon-be-no-one...


Amazon has really developed "not giving a shit" into an art form. They even still have the cliff vesting of RSUs, which is their way of telling new hires "we don't expect you to stay for more than 2 years"


>friends have asked me

Is this supposed to be haven't?


Whoops! Yes, you're right. Thanks! Wish I could edit it now.


Would love to hear your take on Amazon.


Even more importantly, they are evangelists for other future employees.

I actually went out of my way to make it easy for my employees to quit. If they didn't want to stay, then I sincerely wished them well.

The company limited what I could do, but I did my best, and it seemed to work out.


I had some unkind feelings about Patreon when it was announced / made public that they laid off their entire security team. I still think that was a poor move and any company responsible for handling payments ought to have an in-house security team.

That said - I've held off on any criticisms around their strategy/execution for the moment (aside from that) since it's unclear what happened. I'm wondering if Patreon is getting hit with lots of people backing off support of artists after a big jump due to the pandemic.

Given inflation and a lot of feelings of uncertainty around the economy, it wouldn't surprise me to learn that their revenue went way down in a hurry this year.

I back four artists on Patreon, down from five a year ago. In all 4 cases I'm either too busy to get full "value" out of sponsoring (e.g., I don't have time to read the updates or listen to all the demos), or there's not really any benefit other than funneling money to support the artist in hopes they'll continue working as an artist.

Each month I look at the bill from Patreon and wonder "do I really need to keep spending this money?" So far I've elected to - but I haven't been hit super hard by inflation or a layoff like many folks...


They didn't lay off their entire security team. What one person among the laid off ones thought to be 'security team' may not overlap with what their company had been doing since a long time. In startups, its not uncommon to have engineers who have been handling various responsibilities, including security (especially early employees).


> In startups, its not uncommon to have engineers who have been handling various responsibilities, including security (especially early employees).

You're right!

That said, by the time a company is large enough that 17% of it is more than 17 people the kind of startup organization you have wisely and correctly nodded to will have ceased to exist.

So while you are right in that such scenarios have, do, and will continue to happen there's perhaps cause to wonder if that's really the best way to characterize replacing a security organization with specialists with a bunch of engineers who are likely quarter-time security at best. It's akin to firing all your engineers because the sales people can do a little bit of coding each.


> That said, by the time a company is large enough that 17% of it is more than 17 people the kind of startup organization you have wisely and correctly nodded to will have ceased to exist.

Not really. A lot of stuff having moved to services, a lot of stuff being handled in 'no code' manner have simplified organizations a lot these days. Today you can just offload a lot of things to SaaS vendors that can automatically handle those stuff. Instead of having to have entire teams dealing with it like how it was in the earlier decades. You just need a host of capable people to deal with those services on your side, by wearing various hats. So the 'startup format' seems to have become extended to larger organizations.


Agreed, its not ideal but there are things a company can do to put their money where there mouth is in this situation. This seems to be the new playback for doing it right. I appreciate that.


This is exactly how to handle a layoff: do it 3-6 months earlier than required and give the laid off employees that money as severance. Waving the equity cliff too is very generous and good of them.

Everyone should note the companies that do brutal layoffs with little/no severance. It's a major red flag because it shows incompetence and/or a lack of ethics.


I don't like a lot of their business decisions (I know much of this is driven by credit card/payment processors) but this is the most respectable mass layoff I've ever seen from a company, and should be lauded.


Isn’t 3 months a pretty standard severance compensation?


If not, I've had a lot of incredibly decent employers in the past. They all seem to do two or three months. I know of layoffs where people have gotten significantly more, though.


I always thought it was awesome that a company to support creators was creator lead. I came across Jack Conte in 2010 before Patreon existed. He was a music creator on YouTube that made what he was calling Video Songs, songs with each instrument part video'd and mixed together, and selling his music collection through e-junkie at the time. He was one of the first creators I ever financially supported. Some of the videos are still up on YT: https://youtu.be/D2PwVkQBp5o

Despite not knowing Jack personally pretty much everything I've seen from him over the years has reinforced my generally high opinion of him. In this case as well. As lay-offs go Patreon seems to be trying very hard to do right by their employees.


As a former Patreon team member, he has done an incredible job of attracting creator-focused team members -- one of the most mission oriented groups I've ever been a part of.

Don't mistake that for being a good CEO. He gives deep-felt apologies every time he does layoffs... which he does frequently. Often because he just doesn't like what people are doing. He also frequently communicates with the public in a more heart-felt manner than he does his own employees. He's great at putting out a great face.

- 5 days ago - Security Team - https://techcrunch.com/2022/09/09/patreon-security-layoffs/

- 2021 - https://www.protocol.com/bulletins/patreon-lays-off-36-emplo...

- 2020 - https://techcrunch.com/2020/04/21/patreon-lays-off-13-of-wor...

- 2019, September layoffs (can't find the links for these ones)

- 2019, June layoffs

- 2018, June layoffs

Also, to be clear. I was not one of the ones laid off. But I did see my entire team besides my manager vanish one day and then be told I'm expected to do the team's work for the next 6 months.


Yeah, I'd imagine in many respects he's unqualified to be a good CEO since he, as far as I can tell, essentially stumbled sideways into the role as co-founder. There's the upside of the CEO being a creator themselves but the downside of not having a background in business or necessarily the other qualities a good leader possesses.

Patreon has a great mission though and I can see how it would attract creator-focused team members. There are some impressive Patreon alumni in their own right.


Yes, I’m a long time Pomplamoose fan https://youtu.be/FlDGFrP4NgI


Correct me if I'm wrong, please, but since the equity is all options, doesn't that imply that they're making it easier for people to give them money?

Yes, sure, they have to dilute the company a bit by creating more stocks for the people buying it, but if your company is in enough trouble that you're laying off 1 in 6 employees, it seems financially wise to effectively be doing many small rounds of fundraising this way. It extends your runway some small amount.


Only if you exercise the options, you won't exercise the options if it's not profitable to you.


Ah, that's a good point. It's sort of the opposite: now the option holder can wait longer to decide if this is a worthwhile investment, vs "You have 30 days to exercise this or you get nothing".


Don't most options expire a handful of months after leaving the company?


They extended the option exercise period to 5 years


The ability to extend that period isn't always up to the option-granting company; while it is possible for non-qualified stock options (NSOs), incentive stock options (ISOs) must be exercised within 90 days of termination of employment, by law.


That is unusual and I wish more companies would just offer that from the start.


Indeed classy. The 1-year cliff waiver should standard operating procedure during layoffs.


> what they did here with the equity, especially the option exercise period, is a nice touch.

But it's not all that great. Patreon is not publicly traded, so it seems likely that exercising any options will require cash up front, plus it will immediately trigger taxable compensation (income tax plus FICA). And how will the FMV be determined, if there is no public market trading? (ans.: usually just some number voted on by the board). It may well be that the options are never worth anything even after the extended period.

It is clear that these are not ISOs (statutory options), because statutory options by law only allow up to 3 months to exercise after employment ends.


To me, this seems a little odd to complain about given that all those factors were true about the equity compensation when people signed on. The company didn't fundamentally do a bait and switch or change the rules.

Layoffs suck but I found the extended exercise windows and other benefits to be rather pleasantly responsible given the situation.


FMV is determined by a 409a valuation, it’s an imprecise thing but it’s done frequently even for private companies and all employees will know the FMV of the shares. Not just a made up number by the board.

They are likely NSOs and with an extended exercise period the former employees do not need to exercise them. They can just hold them and if within 7 years there is a liquidity event, they can exercise & sell. The taxable event would only be upon exercise, so in the case the former employee just holds the options (which is almost certainly what they’ll do), there is no immediate tax impact, nor any sadness about the options expiring. Upon a future E&S they’ll have taxes to pay but also money from the sale to pay the taxes.

Yes the situation could be more complicated if the person were trying to optimize the tax situation but I think that is very unlikely to apply in this situation. Just hold the options and be happy.

And really PopAlongKid, why are you so critical when you really have not even a basic understanding of how this works?


I was neither complaining (previous reply) nor being critical. I was just saying that at best extending the exercise window was pretty neutral, not some nice benefit funded by the company like extra severance pay or extended health insurance. Most of the comments seemed to be vastly over-valuing this particular aspect of the layoffs.

And if Patreon is acquired some day rather than going public, the employee shares are probably going to be last in line after all the VC money (preferred share classes), and maybe not worth anything. I went through this when I worked for a dot-com startup in the early aughts. Even if they do go public, there will probably be lock-up periods to restrict the immediate selling of shares, and then you are at the mercy of the stock market, where the value of the company (which you long ago stopped having any input to) could well put your shares into loss territory.


The shares can’t lose money (in theory) because with the extended exercise period you can simply not exercise them if they are underwater.

It's not a unique benefit, many companies offer the extended exercise window, but it is very good for employees because otherwise they have 90 days to exercise or abandon the options.

In your mind you are imagining somebody with a few options that are barely in the money. What if somebody who got laid off has worked there for 5 years and is sitting on super valuable options. With no extended window they'd be in a huge pickle where they'd either have to abandon all their options or pay a huge exercise/tax bill right now. But with the extended window they don't.

Neither of us can predict the future of patreons valuation so you shouldn't assume things are going to go badly and thus this benefit will not matter. The whole point of stock options is the option part of it. Maybe it will be worth a lot, maybe it won't, but you'd like to wait and find out and shouldn't have to give that up because you were laid off.


>The shares can’t lose money (in theory) because with the extended exercise period you can simply not exercise them if they are underwater.

Incorrect. Yes, one would not exercise options that are already underwater, but once you own the shares and there is a post-IPO lockup period[0] you most definitely can lose money on the shares, money on which you already were taxed at ordinary tax plus FICA rates. Try looking at the volatility of company share prices in the period immediately after their IPO.

>you really have not even a basic understanding of how this works?

You also have not addressed the strong possibility of being acquired rather than going public. (Ex-)employees do not make any money until after all the VC people do, and there may not be much left.

Again, I never said this was a bad thing, more like a "meh" thing.

[0]https://www.investopedia.com/ask/answer/12/ipo-lockup-period...


Exercise and sell is an instant prices. If you choose to exercise and hold obviously you now have the volatility of owning the stock, I'm not talking about that.

Yes preferred share classes exist, this is irrelevant to whether or not the options have option value! I'm not guaranteeing that Patreon stock will be worth a lot of money, only that it might be worth a lot of money.


I believe the 90day limit for ISOs is just the time to get the tax benefits. You can still exercise after 90days, you just pay more.


This is incorrect. You cannot exercise ISOs after 90 days post-employment. What you pay to the company at exercise isn't time dependent: the strike price is fixed at time of grant. What you may be referring to is the AMT, which does fluctuate depending on FMV at time of exercise, but that doesn't affect the 90-day limit.


Yea I wasn't completely clear I the description, not remembering exactly at the moment. Thanks for pointing out. I was referring to the option some employers will offer to convert ISOs to NSOs after 90 days. So yes you're technically not exercising ISOs after 90days. My point more being that there are options with some employers to not completely loose all rights to equity after 90days.


I think how much compensation they end up with from their ex-employer is likely top-of-mind, actually!


I am not a user or an employee of Patreon, still I appreciate Patreon being generous about equity vesting.


The progressive thing is 10-year option exercise, and the more progressive thing has been 1-month cliff which some of big tech does now

This is "mid", as my friends have started to say


I am sure this says more about me than anything but if a company lays me off there is zero chance of me exercising options in that company.

Edit: I read the link and it appears to apply to RSUs as well. What I said about options is true but RSUs, different story. I’d sell those for sure.


Why not? Options are usually "in the money" so if you don't exercise them you are throwing away money which you already earned.


This is true for liquid options. Startup options are not liquid, there is a chance they’re illiquid until the company folds or is bought- and in an acquisition of a struggling company they’re likely to prioritize higher share classes before common stock gets to see a piece of the price.


They’re extending the exercise window to 5 (or more years) for laid off employees. There’s no reason not to at least hold on to the options until IPO.


Perhaps I’ve had bad luck but I’ve never had options that would have been worth anything.


That's regular luck, or at least not bad. Options worth > $0 is an occasion of very, very good luck.


> Options worth > $0 is an occasion of very, very good luck.

Why do you think that?

It doesn’t require ‘very, very good luck’ for most companies shares to not collapse.

If you work for a big company like Oracle or IBM your options have cash value no luck needed.


> Oracle or IBM

What? These are public companies; short-dated OTM options have > $0 value only in volatile markets. But these companies don't pay employees in options.


Options as tech startup employee compensation vs. Options in general


That's expected. Most startups never recoup the funding they raised.


Patreon is not publicy traded, so your ability to sell any RSUs is very limited.


Full post from Jack Conte's Instagram post:

"Hi everyone - I have some sad news to share: today, Patreon is doing a layoff of about 80 employees, about 17% of our team. This was ultimately my decision, so I wanted you all to hear directly from me about the reasoning.

Before I do, I want to say two things: first, today will be painful for many people, and I am deeply sorry to the incredible teammates who will be leaving Patreon - they are good, kind, creator-first, exceptionally talented, and smart people.

And second, I remember how nerve-racking it was when I was a full time creator - before starting Patreon - to watch companies that I depended on go through moments like this. So for those of you who rely on Patreon for your business and communities: I want to assure you that the company is making this move precisely for that reason - so we can continue to be a rock for your business.

As the world has recovered from COVID lockdowns and entered a broader economic slowdown, it has become clear that the original plan we built doe he year, to support outsized growth through the pandemic, is no longer the right plan for the company.

I take full responsibility for choosing that original path forward, and for the resulting changes today, which will be so difficult for our team.

It's important to me that we continue to deliver for our creators and patrons with new features and products like native video, new content creation and organization tools, a wold-class mobile experience, and new ways for creators to grow their membership and strengthen their communities. To ensure that we make progress on that roadmap, we are increasing our investment in product, engineering, and design, which means decreasing our spend on other ares of the company.

Ad difficult as this is fo our team, I know this is the right thing to do for Patreon, because it ensures that the company maintains a position of strength, even through an economic downturn, while continuing to deliver for our creators.

If you want to read more about this decision, I just published the internal note I sent to our team this morning, and it's linked in my bio. I'm going to stop posting here for a while to be 100% present internally for our teammates at the company. But I promise to come back in a bit - I will see you all soon.

- Jack"


>I take full responsibility for choosing that original path forward, and for the resulting changes today, which will be so difficult for our team.

What does "take full responsibility" mean? Is he laying himself off instead of the employees? Is he paying the employees he's laying off out of his pocket? Is he resigning so this doesn't happen again?

I'm confused how you can just say "I take full responsibility" without actually taking any responsibility. It seems like the laid off employees are taking responsibility.


Consider this in contrast to claiming:

1. We are laying off underperformers to strengthen the company (Has happened)

2. We are laying off poorly performing divisions (again, indirectly foisting the responsibility on the employees, because their division is underperforming)

3. We are laying off to cut costs and keep the company profitable (This may be the truth, but it treats employees like they are replaceable cogs in the machine they can throw out and bring back in any time).

4. Making the employees quit by themselves by creating toxic work environments (recently, forcibly enforcing back to office rules to shed all employees who cannot make it back or prefer remote).

5. Just layoff without any reason, not worrying about the mental health of the leaving employees or the ones who remain.

Just owning up his responsibilities means, the relieved employee atleast does not have to add the stress of "did-I-do-something-wrong" to his/her list of woes. This can sometimes be debilitating.

It also adds to the confidence of the existing employees that the company will do right by them, if it comes to letting them go in the future.

Ideally, no one should get laid off. But companies cannot be forever profitable and the government or no other body is going to bail them out. Considering that, this seems to be a more mature way of handling a terribly difficult situation.


>Ideally, no one should get laid off.

In this ideal world of yours, are people allowed to quit?


Trust me, as someone who got laid off at 1.5 months into the first job, the way that was handled was a jarring experience. I would vastly prefer the above response.

As you spend more time in the industry, you see lots of badly handled layoffs and some better managed ones. You hear the stories of other veterans and learn a little more.

At some point you realize it is something everyone inevitably goes through and just a part and parcel of working in the private sector. You learn to plan ahead financially and mentally to handle such surprises.

Nowhere here do I talk about quitting (other than in the context of the forced one),


So employees will know in the future that the CEO will say it was their fault, but that they are the one that has to deal with the consequences of poor management. Got it. I hope everyone there "quiet quits" after this. Patreon is a cesspool of far-right grifters.


Perhaps you're unfamiliar with the expression, but usually when English speakers say they "take full responsibility" for a tragedy or unfortunate occurrence, they mean from a moral and blame-based standpoint, it's rarely related to the finances of those affected.

The laid off employees are the ones ultimately worse off by the outcome, that goes without saying, what you're missing is that this is different from being morally or strategically responsible for why the situation played out this way. That's the ownership the CEO is trying to take.


That's what they think they are saying. What it actually means is "It is my mistake that I admit is mine, you get fucked, I keep my chair and take zero actual consequences for it"


I mean if it's helpful to you, people can deconstruct the meanings of their colloquialisms so it's more clear, but for most English speakers it's not really necessary. Are you ESL?

If I told someone "we'll be working on this report til the cows come home", I wouldn't expect that it's necessary to explain that the expression doesn't actually have anything to do with cattle, and instead just means I'm expecting this to take a long but indeterminant amount of time. If someone found it clever to point out what I _actually_ meant, I wouldn't find their input very helpful, just socially unintelligent and annoying.

Usually it's more helpful to just research what an expression means, rather than trying to argue about what you personally think it _should_ mean.


That only works if expression isn't purposefully vague or misleading, which most of corpo PR speak is.

"Taking responsibility" (taking care of the kid) of condom breaking is a bit different than "taking responsiblity" (doing absolutely nothing of substance) in corporate world.


Right, so one one might use a more specific expression if they were talking about the parental responsibilities of their own future child. Again, you're trying to argue against the well-understood meaning of a colloquialism that most English speaking adults understand.

Your observation that words being said in the corporate world may be interpreted differently than in the bedroom is not a meaningful one and just comes off as uneducated, if I have to be honest. Communication in the corporate world is often deliberately vague, congratulations on your groundbreaking discovery.


Someone has to be the boss and call the shots. Employees know that they could be fired/laid off when they take jobs. Part of life in the big city.


>>it's rarely related to the finances of those affected.

Some of You May Die, but that is a Sacrifice I'm Willing to Make


Back in the day it meant falling on your sword and letting someone better/new take over.


Luckily, these days we value lessons learned from mistakes.


Which is why we let the well connected people who make mistakes keep trying the same strategies because they’re sure to work out next time.


Depends on the mistake.


It means ‘there are layoffs because of poor management decisions and it isn’t your fault if you’re being laid off and it isn’t your fault if you feel you pushed the company towards these management decisions that ultimately led to your colleagues being laid off’.


That is like the killer admitting to killing someone and it was their fault but they don't want to deal any jail time.


I don't know if it this is the case here but I have seen real power struggles with the boardroom (and the then-CEO departing because the board says so). I was "fun" knowing that the company imploded pretty much after that because they removed the golden eggs from the company.


It is sort of fun to watch someone shoot themselves in the foot over and over while thinking it is someone elses fault. However, they also hurt a lot of people in the process and so it would be even more idealistic to watch them lose everything for a while until they may actually be capable of feeling real guilt and remorse and not just some PR campaign.


Do you expect him to commit seppuku in the town square or something?


how about cutting executive pay first? That is what usually happens in Japanese companies if leadership doesn't live up to expectations.

During covid lawmakers cut their own salary by 20%. A little bit of honor in a culture when ordinary people are taking hits goes a long way, rather than lipservice and PR.


Patreon executive salary is $250k. You really think cutting that is going to make a drop in the bucket for 80 employees?


It wouldn't "make a difference" more than it would be signaling taking responsibility. I'm not necessarily for that but perhaps reducing his bonus this year is better way of sharing responsibility, if people really want or need one.


That is the equivalent of resigning first[firing yourself] before you do to that to others?


What does him resigning achieve? Everyone still gets laid off. The board hires another CEO. Maybe they're better, maybe they're worse. Maybe they save a little bit of money. Nobody who was laid off today gets their job back.

The knee-jerk "oh yeah you should quit if you feel bad!!1" reaction is ill-informed and boring, but unfortunately very predictable.


>>What does him resigning achieve?

The next CEO is more responsible with the money. If you earn high, stakes should be high, else there is no stopping from making decisions that are harmful to all the parties: investors, employees and the company itself.

Taking personal responsibility and resigning fixes lots of things.

>>oh yeah you should quit if you feel bad

He should quit for making wrong decisions, for which he had many many weeks to months to deliberate upon. And also had the choice to not continue with the bad decisions for nearly the same time if not more.


Instead of saying things like "there are a lot of coasters" and "some of you don't belong here" it is refreshing to see someone actually say "I made a choice, and it did not work out. It was no-one else's fault but mine."

I've been through a bunch of layoff, and most of them are steeped in legal noise, mainly because in the UK layoffs need to follow a legally proscribed route. so the explanations are normally a lot less honest.


It means that he's not blaming someone else, such as the laid off employees, or other employees.


I always interpret it to mean "if you're going to hate anybody, hate me". It's deflecting blame away from his staff. "Full responsibility" is a bad term for sure.


It means he takes the blame, but doesn't face the consequences.


> To ensure that we make progress on that roadmap, we are increasing our investment in product, engineering, and design, which means decreasing our spend on other ares of the company.

Underrated dynamic in the startup layoffs this year. Many software companies grew headcount rapidly in areas outside of prod / eng in 2021 and are now scaling back those roles while preserving the talent that was extremely difficult to hire.


Their career page really bears this out. Lots of open engineering positions.


> it has become clear that the original plan we built doe he year,

I think something got lost along the way there.


What does “taking full responsibility” even mean? Like people lose their livelihood and you can get away with “I take full responsibility”.

Taking full responsibility mean taking a pay cut or stepping down or basically taking consequences for yourself first before others have to.


Nobody looks like they are going to lose their livelihood over this:

https://blog.patreon.com/a-note-from-jack

3 months' of pay + longer depending on tenure at the company. Healthcare until the end of the year. Mental care up to 6 months. They contracted a placement company to place the laid off staff to other companies in the sector. A lot of those people will already get hooked up by a company within a week or so, even without the placement company being able to take action.

This looks as decent as layoffs go.


Why was an Instagram post shared instead of the blog post on patreon?


That's the choice of the person who posted the Instagram post at HN instead of the actual blog post that was posted before the Instagram post, obviously.


> Nobody looks like they are going to lose their livelihood over this

We don’t know everyone’s unique situation, even if they did go beyond what most companies do.


No. That's not the social contract for employment. It's dangerous to think it is. There's a mutual need from both parties. When that need changes, both parties are free to respond. Forcing a company to keep someone would be just as bad as forcing someone to stay.

What we also don't know is the companies financial situation. Keeping people on when they can't be afforded can be a way to make a company completely collapse. I was in two startups that would have collapsed completely, without layoffs, around the time of the last recession. This is why the "keep x months of salary" are rules you strictly follow.


There's a difference between "someone will lose their livelihood because of this" and "that's entirely the employers fault."

Recognizing the impact of an action does not mean you're entirely responsible for it.


What are you responding to, exactly? That comment was claiming that we can't know for sure that "nobody" would lose their livelihood over this. And it's true, we can't know.


I think they are responding to the assertion that the employer is obligated to keep the employee just because the employee might have absolutely nowhere else to go. Especially in the competitive tech space neither you nor your employer are obligated to maintain your employment relationship.

This is besides Patreon giving their former employees a license to goof off on their dime for 3 months. I can’t imagine anyone at Patreon being so hard up that 3 months pay and insurance to look for new work is enough to break the camels back.


> We don’t know everyone’s unique situation

Those who are hired to Patreon and similar companies arent people who would end up unemployed if they are laid off. Those people already have to turn down recruiters who try to poach them every week.


Mid-November through December is a hiring no-man's land due to the accumulation of end-of-year vacations and family trips. Most of these employees have about a month and a half before the shutdown begins and they are stuck scrambling to try to find work in the new year.


This is pure negativity and not true. Hiring might slow down because of seasonality overall, but I was hired the last two times end of year. It's a great time to get new employees ramped up when things are slower.

A polite reminder that some companies are growing really fast and are even struggling with hiring.


Just wanted to throw in my $0.02 here as well. I've been hired in November/December twice in my career without issue.


Likewise. I didn’t even know it was a slow period.


Same here. My current position was a November hire, as was my first position.


I got hired in November, for a job I held for almost 27 years.


I would think the impending collapse of the tech sector might be a bigger concern, but I think there's still plenty of time for people getting laid off right now.


January/February is the most active recruiting time though, 3 months pay is more than enough to make it there without any issues.

Most people in tech also don't live paycheck to paycheck. As an adult, your responsibility is to have an emergency fund. No career is safe.


It's not going to be this hard. They will land on their feet in weeks, maybe days. Anyone recruiting is hard plugged into layoffs.fyi and while big company recruiting takes months, we (and my other friends in startups) can turn around the whole thing in 3 days if we have to.


Not sure why you are downvoted for speaking truth. I know as a manager I rarely brought on new hires during this period if I had a choice.


Dogpiling is dogpiling. Luddites are luddites. Who am I, a person with real tech agency recruiting experience who could view the actual live job boards year after year during this period, to possibly to speak out about what actually happens when we've got people who have anecdotal experience? Every year we would reach that point and suddenly pull many jobs from the board until after the new year, but I guess it was just my imagination because someone over there got a new job in November once.

I didn't even say it was impossible. I just think it's unrealistic to expect to find something after Nov 15th and until the New Year. Sorry for knowing what I'm talking about, I guess.

Also, I think it's quaint that people assume that when labor reductions happen at tech companies, that only tech employees are affected. Somewhere there's an admin assistant who has been working at that glorified CMS, and I doubt they have the same job prospects as a software architect.


Recruiters would fill that gap readily enough.


My comment comes directly from my experience in the past as a recruiter. We saw a 60%+ downturn in the hiring market From Nov 15 - Dec 31 regardless of how the hiring market was performing in general, and then they would spring back to life after Jan 1 when everyone was back in the office. It takes more than a hiring manager to hire employees.

The slowdown comes from all the moving parts who need to be in place in order to facilitate the transition of an employee to an org.

Think of your average tech hire who needs to (a) go through orientation just like everyone else, and (b) is going to take a week or two just to get his work environment and credentialing set up so he can work with the servers. I'll put my experience on that side of the desk working with dozens of clients against any anecdotal one-offs who got hired late in the year.


You speak the truth. Any recruiter with any experience at all will tell you hiring plunges late in the 4th quarter. It's been that way forever. There does tend to be an uptick in interviewing starting late in the 3rd quarter and early on in the 4th (i.e. now) so they can get the people they need in place for the start of the new year and next year's budget. Hopefully these folks will be able to take advantage of that and if they can't start immediately at least be ready to go at the end of the holidays, and if they've been paid through the end of the year then they can at least enjoy the holidays.


A lot of business in general tends to slow down during the last few weeks of the year. It's sector-dependent, somewhat, but just things like getting approvals from or meetings with people who are 'out' for the holidays impacts even well-intentioned orgs from moving at 'regular' speed when it comes to making hires or signing business deals or what not. It's not a 'negative' viewpoint so much as 'realistic'.


This viewpoint seems very domain/market dependent. Retail usually explodes during winter months, for example.


Yes replace your likely 6-figure dev job with a $15/hr job stocking the shelves at walmart...


Walmart has 943 software engineering positions open right now.

They're making more than $15/hr: https://www.levels.fyi/companies/walmart-global-tech/salarie...


While true the parent comment was talking about Seasonal jobs that retail adds at the end of the year, these are not programming jobs that are added but cashiers, stockers, etc.


I wasn't. My point stands - people, including myself, have no trouble getting software related jobs in any season. Other markets/industries it may vary.


He's taking responsibility for over-hiring relative to the needs of his business, and taking corrective action for the long term health and viability of the business. This is the right thing to do. Yes, it sucks for the people who lose their jobs, but unfortunately some risk is always involved in an employment arrangement. It would be far more unfortunate if Patreon overspent to the point that their business had to close, as that would affect their entire userbase and entire employee base.


> He's taking responsibility...and taking corrective action for the long term health and viability of the business.

Maybe this is just a language thing, but in my world "taking responsibility" involves some action to personally shoulder the pain of the layoffs beyond saying "my bad". I'd expect it'd at least begin with resignation in this case. Just like you can't just announce "I declare bankruptcy" to shrug off debts.


The post includes tons of details about complicated things Patreon is doing to help out the people affected. Do those count for nothing to you? It feels like you are insisting not on "support" or "generosity" but on "sacrifice".


Those are things the company is doing to take responsibility, not him personally which is what his statement should imply.


When you're +$400mil into venture capital raises 'the company' doing something like that can be an awful lot of time, effort and potentially political capital for a CEO to get through.

I'm astounded that so many supposed seasoned leaders were out there making crazy projections around maintaining covid levels of growth and I also don't think 'my bad' is enough in that context, but benefits above what's required are rarely handed over without someone committing to fighting for it.


I'd share your surprise; but, I sometimes question if they believed it themselves. I've spent the last 15 years in public companies and if there's one thing "The Street" demands, it's growth upon growth. The context of a pandemic being a once-in-a-lifetime event is meaningless. Your business experienced record growth and we expect you to continue that trajectory of increased growth no matter what--so get to investing for it!


Also, it might have been defensive. If competitors are burning money, you might feel like you need to keep up, even if it's not the ideal trajectory.


I tend to think that non-profit-maximizing actions of a company are almost entirely due to top-down leadership, so I would give him credit for those actions.


Here's how the Federal Government defines:

Responsibility

Being responsible means being dependable, keeping promises and honoring our commitments. It is accepting the consequences for what we say and do. It also means developing our potential.

People who are responsible don't make excuses for their actions or blame others when things go wrong. They think things through and use good judgment before they take action. They behave in ways that encourage others to trust them.

People who are responsible take charge of their lives. They make plans and set goals for nurturing their talents and skills. They are resilient in finding ways to overcome adversity. They make decisions, taking into account obligations to family and community.

This guy literally made excuses for his actions: "broader economic slowdown"

"To ensure that we make progress on that roadmap, we are increasing our investment in product, engineering, and design, which means decreasing our spend on other ares[sic] of the company."

So it's not even a money issue. They have the money, they just want to spend it on servers and other people.

And finally, just so we're clear, I don't take umbrage with his decision and his plan for his employees. Hell, it's admirable, frankly. I take umbrage with his words. He's not taking responsibility. Responsibility means he'd cut his pay as much as necessary to keep these people because he misjudged the market and where it's headed post-COVID-19 lockdowns (since there is no such thing as 'post-COVID-19' - it's here forever now).

This is pretty classic example of wanting to have the best of all possible worlds.

"I want to be lauded for my graciousness. I want to be lauded for taking responsibility. I want to be lauded by my investors for a plan that grows the company."

That's why this is a load of horseshit. He's trying to please everyone. I have no doubt he probably agonized over this decision - I really do not; but he made it, and that means there are certain consequences with which he must live, one of those is that it should be clear to his employees that they will always take a backseat when the economic times get tough.


> The post includes tons of details about complicated things Patreon is doing to help out the people affected

I was under the impression we were addressing "Jack"'s claim to responsibility. I wasn't trying to comment on the actions of the company (which I fully admit is more compassionate in its layoffs than other companies would be).


You're textbook correct, I think, but in general I never really understand the CEO who makes a statement about trying to do everything they could to prevent this from happening but there was no possible other situation than laying off X amount of people who were significantly contributing to the company.

Not that this was said in this particular case so directly. This is just a general thought.

How is funding so tight that cutting the 1% of money going to these people is going to make all the difference? It's not even a total 1% gain, there will be some lost productivity making it somewhat difficult to measure.

If you truly tried everything, couldn't the CEO or other executives take a tiny cut? Not that I expect them to, I'm just saying if they truly did everything within their power to prevent it, like is often said.

I mean, sometimes I give a significant amount of my salary, like 10% as donations / tips / handouts and expect nothing back. These aren't even people I did something bad to, like forgot to pick up when I said I would, or felt guilty for spilling food on their carpet.

Surely in situation where I messed up and caused a problem for someone, I would do whatever it takes to make it right. I wouldn't just say "Well, that's what you get in this system of inviting friends over. I'm not technically required to do anything. I guess there's nothing I can do (including picking up the mess I caused or paying to have it cleaned)"

I've seen similar large donations from people who truly struggle to pay for rent and food even be similarly generous. Sometimes people will live on limited food or delay getting an apartment if it means helping out an acquaintance.

If you make millions of dollars, you don't need to worry about these basics. You'd think it'd be easier to take a personal hit which probably will have actually 0 impact on your life (literally no change-- keep on golfing, vacations, etc), rather than supposedly living with the guilt, as is frequently said, of people struggling to survive because you wanted to save 1% of your company's money for a few months (before realizing you need to hire and retrain people from scratch.)


They’re listed as having 885 employees. If the average cost is $100k per head, 88M/year looks like a pretty high burn rate (they’ve had ~400M in funding). Saving 10% in one swoop is huge.

> it'd be easier to take a personal hit

Jack Conte, the CEO, was not previously wealthy (that we know of). At this stage he might be getting paid very well, maybe even in the mid six figures, but definitely not spending $8M/year on golfing to make that a viable alternative to layoffs.


It means that the employees are being let go because he did a bad job, not that they were low performing or that other employee performances caused patreon to perform better.

It doesn’t mean much in the grand scheme of things but it’s just that he is claiming culpability for all of the ills patreon is experiencing.


The main significance here is "please hire the people we're letting go as if they were normal Patreon employees you'd want to poach; they weren't let go for performance or other individual reasons".


This is what a layoff means no? My understanding was "Fired = Your Fault" and "Laid Off = Your Employer's Fault".

Is it possible to be "laid off" for performance reasons?


Yeah, absolutely.

A company finds itself in a situation where it needs to reduce headcount for reasons. Do you a) just role the dice and randomly pick who goes? or b) Have managers rank their performers and use it to get rid of the lower performers or protect their most valuable people? In a case like this is means some variation of "you're too expensive for what you do for us."


some companies have a policy to layoff the bottom x% of "lowest performers" so yes it is possible to be laid off for performance reasons.

For example "The bottom 10% of salesmen by sales volume"


They seem to have contracted a placement company to do that.


Yes, and the parent's point is that companies that end up looking at those people's resumes are going to know that they were not let go because of poor performance. What the parent said.


> What does “taking full responsibility” even mean?

It means "I'm not blaming anyone else for this". Which might not mean much but it's probably better than the alternatives.


It's a far sight better than some of the "the employees we let go were worse than worthless, likely the spawn of Satan himself" memos you see.


"dumb dolphins"


He said the same thing last year lol

https://www.youtube.com/watch?v=MV-3GgU6rlo

It seems to be what most CEO are saying lately.


It's like people didn't read the statement at all. He clearly says they're going to invest more into engineering and some other shit... so it's not about money. They're going to spend more fucking money. This sounds like a bunch of people got their jobs automated away through algorithms or intelligent systems or just whatever innovation you wanna chalk it up to, and they redundant to the company, so they gotta go.

This is why I will never be a CEO. I'd just come right out and say, "17% of you are expendable and I had your jobs replaced by scripts and a few machines. I'm going to use that money to buy more machines, hire more brilliant engineers, and see what percentage of the company I can replace by next year."


Forget about CEO, could you even be a competent manager if that's how you think?


I hate to be the one to break this to you, but this is how an extraordinarily large amount of high-level individuals think - they just won't admit it.

If you're able to automate a large portion of your workforce, why wouldn't you? You'll be rewarded for it in every aspect. You'll be praised by the Board of Directors for cutting costs and improving productivity (since algorithms and robots don't have to sleep, never get tired, never call in sick, never get drunk and shit in their husband's bed, etc.). You'll be praised by Wall Street as a "visionary, technologically-minded thinker / leader".

There's zero downside for you.

There's enormous downside for parts of society.

The difference is, I'm willing to admit that when I do this, it's directly to my benefit.


Thanks for 'breaking it to me', I had no idea /s

Have you considered that part of the fabric of civilized society is...being civil with the people that you interact with, and require cooperation from?

You can hold any opinion of them that you like, but the difference between a competent manager and an incompetent one is how they can translate their personal disdain for their direct reports, in a way that doesn't treat them like cogs, and improves their performance on the things they're responsible for.


This is just patently untrue and plays out in every office across the entire world every day.

What makes someone a competent manager is whether or not they complete their assigned tasks and projects that come down from above.

You don't like people who are direct and brutal in their feedback. Got it.

Hell, you can turn back the clock to 2004-2008 World of Warcraft and see this for yourself. The best guilds in the world had leadership that was brutally forthright - bordering on downright cruel - to their membership, but they still managed to execute, because when everyone's goals are aligned, you'll be surprised the shit people are willing to entertain. And not only were these people not being paid, they had to pay to play the damn game!

And yes, I know the analogy doesn't map perfectly onto work for several reasons, but the crux of the idea is there: a harsh taskmaster can move mountains with a little bit of fear (I'll replace you with a shell script if your performance doesn't improve) and a lot of honesty.

In the future, you could save us both a lot of time and effort by just saying, "I don't like this management style."

But I've seen it in video games, I've seen it in startups, I've seen it in Fortune 500 companies, and I've seen it in the military. Properly implemented, it works wonders.


That is the one and only purpose of high tech. To automate work and improve efficiency (I.E. make people redundant). Be that automating the work of acquiring and connecting eyeballs to adds or getting rid of Janice the nice secretary from the 80s to going from 50 to 5 production planners at a factory.

It was fine when I was an external developer, but when I switched over to an in-house role it sucked seeing the fear in departments that I turned my gaze to :(


I don't think you can be a competent manager if that's not how you think.


Taking full responsibility used to look like getting fired for poor planning. Now taking full responsibility means "I say in public that this is my fault" versus trying to push the blame off.


Agreed. That part was not well written. It seems like a vacuous, self-important phrase unless it is immediately tied to something else like, "I take full responsibility and as such I will be <taking the following meaningful actions or stepping down, etc>.


Corpspeak for “your call is very important to us, all our operators are currently busy…”


That would be meaningless virtue signaling. Standard corporate speak.


What would non-“meaningless virtue signaling” look like to you? This seems quite decent as far as these things go.


Well, seeing as how saying that means nothing, adds nothing, and says nothing, then not saying it at all would be more meaningful.

The non-corporate speak translation would be “I tried my best to make this company bigger and more valuable, but it didn’t work. Some of you will now need to be sacrificed, but not me!”


That's because you didn't come up in a time when people who fucked up like this would step down from their position for their clear and obviously failed leadership. You're not used to seeing what "full responsibility" actually is.

Full responsibility is a samurai killing himself painfully while his best friend cuts off his head to end his suffering. That's full responsibility.

This is, "I fucked up guys, here's 3-6 months pay and some benes... my bad. And yeah I know I fucked up last year too, but I took full responsibility then as well, so it's all good..."


Yes, that is a good image. I don't think litteral seppuku is called for (though it is a helpful reminder of what shame has looked like in the past), just that people are getting a bit tired of executives saying "I take full responsibility for this failure," while getting handed a giant bonus, a pat on the back from the board and shareholders and another biz mag feature.


"I am responsible for overhiring/mismanaging, I'm sorry."


Removing that meaningless sentence, or replacing it with an apology.


Putting your money where your mouth is. Resignation and public, in-person apology like they do in Japan.

Better yet, refuse to take a bonus, not that the board should award one. If the board awards one anyway, contribute 100% of it to helping laid off employees.


He quits / pay cut. Something where his actions affect him


We don't know that he hasn't taken a pay cut. Posting about it might just come across as self-serving, but then not posting about it makes it seem like he's not doing it. Lose-lose, it seems.

And... I suspect whatever he's doing is also affecting him emotionally/mentally, and... to some extent career-wise. Taking these sorts of public steps may make it harder to be entrusted to CEO someplace else in future. Given patreon specifically, I doubt he's planning to leave and go CEO someplace else, but overall, there's no easy outs in scenarios like this. He'll be getting second-guessed and pilloried regardless of what steps he takes.


The rest of the letter reads well to me. He should have avoided that phrase given how pilloried it's been recently, with reason. But that doesn't take away from the generous actions he's fought for for the departed.


If every CEO would be sanctionned for every situations no one would want to be CEO.


Even if they didn't bend over backwards to make sure everyone lands okay, saying "lose their livelihood" is a bit much, no? These are not peasants losing their land, rather they're highly paid professionals that should have no issue finding work. Shameful plug - we're hiring at Vitally :) Feel free to reach out in the DMs.


You might be overthinking... Jack over-hired. That's it. Doesn't really warrant a CEO stepping down. He's simply empathetic and wants to let people know that the employees are good to hire, and Patreon is still doing well as a business.


I subscribe to a single Patreon. It's an artist publishing an online comic. I pay for day-ahead access vs the public site.

Reading the thing I pay for is fucking _painful_ on Patreon. So is trying to use their comment system to interact with the creator or other fans. Everything is slow-loading infinite scroll with tons of "load more" links. It is absolutely dreadful and every time I interact with the site I'm reminded that I really should cancel my subscription.

The experience has not meaningfully changed in years.

They can pay all the lip service they like but Patreon sucks at connecting creators to fans/subs. Their content presentation sucks. Their search sucks. Their comment system sucks.

Whatever they are doing they aren't making the service more useful to the people forking over the money.


As a creator it sucks too. I manage a small patreon page for a Discord bot and every time I edit our page I have to relearn how to use the interface. Every time I want to make a post I forget how to...make a post? How in god's name is it possible to make an interface so bad that one has to remember how to make a post? It's completely unintuitive. This is not something that should be difficult lol. (The part I forget is adding alt text to images, although I think there might be other parts I forget too. I don't post that often, it's a small page for a side project.)


Apart from Ko-fi is there any good alternative?


Discord is slowly rolling out a premium service, and I think that will be a HUGE blow to Patreon. Creators already put Discord rewards into their Patreons, they already have Discord servers, their fans are already in Discord, having the payment processing go through Discord just streamlines the process; plus, a lot of people will have CC details saved in Discord due to Nitro.

Right now afaik it's only available for select partnered creators, but I hope the end goal is to make it available for any server that wants it, and truly compete with Patreon that way. We will certainly accept pledges that way. It'll be a huge hassle cos no one will want to cancel Patreon so creators will have to do updates in two places etc but I imagine most people will want to move to Discord.


Lots of YouTubers are flocking to SubscribeStar. I haven't pledged anything on there, just 2-3 Patreons, but I've noticed it in several channels I follow.

https://www.subscribestar.com/


I know of Steady in Europe, am sure there are others, too. https://steadyhq.com/


100% this. I subscribe to a couple dozen digital sculptors who provide monthly STL file drops. Patreon's platform is terrible. Their billing is amateur. Their customer support is pathetic. The UI is... just impossible once you get above a few creators.

The alternative in this monthly subscription digital sculpting space, MyMiniFactory, is also not great, but it's eating Patreon's lunch by not being actively hostile to the subscribers. (Well, a bit hostile. I need to use an adblocker. But they have $1M funding or less [compared to $473.3M], so I can make some allowances here.)


Digital sculpture sounds really cool. Are the STL files so you can print it? I've looked for something like that a couple times (communities, etc). Can you provide any links?


Yes, for 3D printing in resin (for miniatures) and FDM (for buildings/tanks). I have played tabletop wargames for something like 30 years and the vast majority of digital sculptors cater to my kind. MyMiniFactory[0] is a great place to start, and Cults3d[1] is also good.

0. myminifactory.com 1. cults3d.com


Completely agree! Ideally, I'd just get an RSS feed for everything posted by the creators I follow.

I ended up automatically forwarding emails from Patreon to my RSS host, and that mostly works. Sometimes I don't get an email, sometimes only one of multiple images is included, and recently they started cropping images in the email (and stopped after a bunch of people complained)

This caused me to stop subscribing to new ones altogether


most of the sites that scrape patreon's content have better interfaces and loadtimes than patreon


This is somewhat meta, but linking to an instagram post is terrible, I get immediately redirected to a login page and can't even see the content on Instagram. I do not have an instagram account, nor do I want to create one just to see this.

Was there no better place to link to?



This happens more and more when I visit Twitter now, too. _Really_ annoying and I have zero intention of creating an account on either of those sites.


If you use Ublock Origin, you can enable the "annoyances" filter and the Twitter login overlay is removed.


Thanks - had no idea about that. Enabling it now.


With Twitter, I find you can click the log in button, and then there is an X to dismiss the modal with, which then lets you read the page. (And this is absolutely annoying, terrible UX, and I wish to God people would stop putting things on Twitter.)


The existence of these backdoors is a bad excuse these teams use to justify user-hostile UX. I had no idea this was possible, so for me this might as well have not existed. I simply skipped reading twitter threads when I was on a device I wasn't logged in on.


Reddit also, if it is deemed sensitive.


Sometimes I click a twitter link on a devices I don't want to login to (work machine). I ended up creating a second account for this exact reason, so annoying.


if you are using firefox on the desktop you can prevent all cookies for the site than that goes away. Free the browse with no popup for login


Not only that, it's an image of text. It's incredible that this is still how we're sharing information online in 2022.



Love it when companies and executives come with subtle titles like "A Note from XXXX", "A sad announcement", "Looking ahead into the future" etc. when they're nothing but just plain layoff notices.


A blog post was done other than Instagram:

https://blog.patreon.com/a-note-from-jack

"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"

So basically, they overhired to meet demands during Pandemic and now as less people are using the platform (??), there is no need for the 17% of people. Interesting.


> So basically, they overhired to meet demands during Pandemic

Everybody did, even anticipating that the move to online economy would slow down after the pandemic.

But nobody predicted the Ukraine war, sanctions, and the economic effect those sanctions made back in the West.


Lol at that last statement.


What's funny about it?


>In the US, teammates leaving Patreon will be given three months severance plus an additional two weeks for each half year of tenure beyond the first year.

Pretty decent IMO.

>You’ll also receive COBRA health care coverage through the end of the year.

Odd that that doesn't match the pay period, but oh well.


I suspect its because of the way that COBRA works: COBRA would start for them on October 1st (their active employee insurance would cover them until Sep 30), so they are getting three months. I have never seen a health insurance that supported two week increments, so you couldn't do the 'two weeks for tenure' thing. You could, in theory offer an extra month per year beyond the first, but that's a lot of extra work and expense to go into, offering it, for something that I suspect will have very little pick-up. My guess is most everyone who is laid off today will have a job which will offer insurance by Jan 1st.


In spite of what some developers seem to think job hunting can be a many month process, especially over the holidays and in an environment where many companies are being very cautious about hiring. So no I don’t expect most will have jobs by January.


One thing that is not clear is if they will actually Pay for COBRA or just provide COBRA coverage. Employers can provide the coverage for COBRA but are usually not obligated to pay for it. Also, cost of COBRA out of pocket can go upto 102% of the total premiums (yes the 2% can be admin fee added by the employer if they choose to do so)


This is close to three months, and many health plans renew at the beginning of each year, which accounts for the slight difference.


Health insurance is usually done by the month.


Let's change the HN post to link to this, it is much more informative.


Ok, we've changed the URL to that from https://www.instagram.com/p/CidAMM7pQ7u/. Thanks!


Ideally, that’s how it would be described in the internal meeting version.


Every SV company:

1. Start a company that does a thing well

2. Hire enough people to do the thing well

3. For some reason, hire more and more people to do more and more random things

4. Hire more managers who hire even more people

5. You are now a complicated mess and can't get anything done

6. Run out of money

7. Fire people and write a sad post. Continue to collect hefty CEO salary.

Why not just stop at 2?


Because if you stop at #2...

1) you won't attract any follow-on investment capital;

2) your original investor will be angry that you're sitting on a pile of money that is doing nothing;

3) you will likely grow slower than your other competitors. in some markets, this is death, in other markets, this is fine.

Patreon had nearly 500 staff before layoffs. Now has about 400 staff. You may have a hard time understanding what all those people do, but I suspect they're all quite busy.


Shouldn't point 2) be start paying the pile of money back? Or allow investor to sell the whole thing to someone else who just want to live on dividends.


The investors don't want their pile of money back - that would just be a loan, they want your business to go to the moon so their equity becomes much more valuable than their investment. The investors will call for more investment and faster growth, so they can find a window to sell for big money.


> You may have a hard time understanding what all those people do, but I suspect they're all quite busy.

I'm guessing 100 managers at least. Busy hiring more people to staff their perpetually understaffed teams, each doing some disjoint initiative.


+1

That's just not how VCs work. Basically it's you HAVE to always show hockey stick growth.

Steady 5-10% per year isn't good enough. It has to grow exponentially. So that's why you keep hiring and keep spreading out the service into a whole bunch of other areas.


I’m just going to point out that growing 10% per year is actually exponential growth


Which is why every founder should always promise 11% growth. Because most companies only grow at 10% - if they're lucky...


Another arrow in my quiver called "VCs aren't a good model for funding companies."


There are plenty of companies that have been highly successful at growing way beyond their first product or service. If Apple had stopped with PCs, we wouldn't have iPods, iPhones, iPads, etc.

The danger is when a startup seeks to grow just for growth sake. Hire way more people than we really need so we attract investors by showing rapid growth is their modus operandi. That approach has actually worked enough that many companies are willing to travel that risky road. But that road is also littered with casualties.


Many people do. They have a five-person company that does one thing and that you never hear of, either while it's running happily or when it goes out of business.


> Why not just stop at 2?

Because your investors will never allow that. And without their money, you cant even reach #2.


I've wondered this as well. Look at Uber, how are they not profitable? How many more engineers/general personnel do they possibly need to hire?


Looking at their app they do a lot more than just give rides nowadays. UberEats delivers from restaurants, but also apparently groceries now? They have a short-distance package delivery option. Rental cars. And some kind of tool to book a plane and hotel for travel?

I don't know if it's the right business call, but Uber is like 10 different companies now.


Because taxi business isn't actually that great business. You have to employ lot of relatively expensive drivers and they have to pay for costs of complex machine... And the users want to get it as cheap as possible and complain somewhat if prices ever go up.


Because a startup isn’t about growing sustainable. It’s about build an expensive rocket ship and trying to grow at record speeds. Most companies will fail but a select few will have 10x+ gains.

You don’t need VC cash to start a successful company but the time horizon is much longer.


Patreon is/was clearly trying to become an all-in-one platform to justify their increasingly large cut (like 15% now). Stopping at 2 doesn't achieve that.


Please don't give away the secret sauce. Let those silly entrepreneurs and investors keep playing with fire.


If you take VC money you are on a different track. VC's place thousands of bets with a %99.9 failure rate. But the hits, are so huge, they cover all their bad bets. So they want you to take the money and swing for fences.


> Last week, we let go of 5 teammates from our security organization, which stemmed from a different set of reasons from the ones guiding today’s decisions. 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. 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.

This is interesting, and I'm not entirely convinced. It seems as though their security team was not warned and you would expect a handover process.

> The change last week was part of a longer-term strategy to continue distributing security responsibilities across our entire engineering team

> 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.

This doesn't sound like an increased investment, it sounds like a decreased investment. "Why are we paying these people when we can just get the normal engineers to do this?". Maybe this is possible, but who's going to allocate sprint time to work on background pentesting and documenting?

You may say "we will get an external team to do this", but will they get access to source code? Will they get access to upcoming features?


I have no idea how their team was composed previously, but it could be that they had a lot of folks who were analysts but weren't contributing much to remediating issues. It sounds like (and I have no idea again) that they're hiring a small number of security engineers (maybe even one) to not only actively look for security issues, but to also actively work to remediate them and improve code security posture as well. This function paired with a specialized external team to handle general SOC/network level security probably is a smarter investment for them right now.

> You may say "we will get an external team to do this", but will they get access to source code? Will they get access to upcoming features?

Most likely yes in my experience.


> but it could be that they had a lot of folks who were analysts but weren't contributing much to remediating issues.

Neither feature testers (does it behave as expected) or security testers (is it secure as it does it) are expected to write fixes. Writing fixes needs to be planned in the sprint and is better worked on by an expert on that system.

> they're hiring a small number of security engineers (maybe even one) to not only actively look for security issues, but to also actively work to remediate them and improve code security posture as well.

If this is true, it could seriously affect their ability to ensure the system remains secure. Sometimes a security issue will take a long time to hunt down, and perhaps require a large rewrite to deal with it. Whilst this person is dealing with this, they are no longer looking for new issues.

I'm just not sold this is anything but a cost cutting exercise, and could (theoretically) lead to bad practices in the future.


> Neither feature testers (does it behave as expected) or security testers (is it secure as it does it) are expected to write fixes. Writing fixes needs to be planned in the sprint and is better worked on by an expert on that system.

...on teams that are structured that way. That is far from a universal thing.

But, yes, I'm with you that it could be just cost cutting or something weird with the team pushing back on some things. As I said, I have no idea, but there are universes where it makes sense to make those changes.


Why would you not wait a week and bundle these layoffs together? Unless the security decision came from a mid-level manager who didn't know this was coming.


Exactly. And why would it be so sudden? It's just not adding up.


I think this is just the start for some bad things are patreon...

This video of execs at Patreon apparently turning a blind eye to employees calling out patreon users that were selling images of underage children: https://twitter.com/TizzyEnt/status/1315626557688483841?s=20...

They also laid off their ENTIRE security team: https://techcrunch.com/2022/09/09/patreon-security-layoffs/


Patreon decline had 3 Phases

1. Censorship which caused a market reaction for more competition, and the first mass exit of the platform

2. Changes in the Fee Structure and billing policies, this caused the 2nd mass exit from the platform

3. Platforms getting better at internal monetization (i.e YT SuperChat and memberships)

There has been little advancement of of the patreon platform, and with more and more competition from other direct compeitors (subscribestar, etc) and different monetization avenues (TeeSpring,etc) there is little reason for creators to use patreon outside of the network effect, and since they are not growing that effect is smaller every day


I'm guessing this is the Twitter link you meant: https://twitter.com/TizzyEnt/status/1569439160561442817


I don't think that's the right twitter link


It's not actually that unusual to absorb security into engineering; if engineering is already doing most of software security, and engineering/ops is already handling IT security, then the rest of security might in fact be duplicative of stuff third parties can do just as well.

I have no inside knowledge as to whether this was the case at Patreon; no opinions about Patreon whatsoever. But re-orging security into and out of engineering is not unprecedented.


You're right that having security report to engineering is not unusual. It's also not a great idea due to conflicts of interest, but not unusual.


Patreon could have eaten OnlyFans' cake so easily, instead they seem to be struggling like everyone thought they would when they banned NSFW content in 2017.

I don't understand why they thought that move would benefit them. I don't understand how Jack Conte is still CEO after such a stupid change or how he can say with a straight face that he's "taking responsibility".


There is a time-honored path that this choice to ban NSFW stuff is part of.

1. Make a way for people to get paid over the Internet for making stuff.

2. Be okay with horny stuff, possibly as an explicit choice in the beginning, possibly as a pivot when people who make horny stuff start shifting a lot of money through the pipeline you're providing.

3. Get big enough for Visa/Mastercard/Apple/Google to notice that you sure are pushing a lot of horny money through their payment systems. Which have a lot of clauses that basically boil down to "no horny".

4. You have a choice here: figure out how to work completely outside of whichever payment system's owner is saying "no horny", or ban horny. I've never seen anyone take the former option.

5. Make a wishy-washy blog post about how you are banning horny stuff that completely fails to come out and say "this really sucks and we hate to do it but we can either drop our horny creators and keep existing as a company, or we can pretty much pack up the entire affair; here are some ways you can go put pressure on Visa/MC/Google/Apple/your lawmakers/etc to maybe change this state of affairs for the next people to follow this path, seriously this is 100% happening because V/MC/G/A finally noticed we have been blatantly skirting these rules".

This has happened many times before, and it will continue to happen many times in the future until someone chooses "fuck all existing payment processors, we're finding a new way to get money from customers to creators" and makes it work.


Despite all my anti-crypto ideals and principles, this feels like a potential use case. If I have to make an ethereum wallet to get all my niche furry porn, so be it.


It does, doesn't it. But it's been almost fourteen years since Bitcoin hit the world and it's never become a major way to pay for porn, despite everyone who makes porn knowing damn well that this keeps happening. Sex.com was making millions a mere five or so years after the WWW made it out of CERN.


Spinning up a separate branch with slightly different branding is probably easier than a different organization setting up shop and re-implementing from scratch.

From your post, you make it seem like OnlyFans cannot possibly exist. It does, and therefore Patreon could have built it.


I am pretty sure that the payment processors giving you the choice of banning horny stuff or getting the boot would not look kindly upon “a separate branch with different branding”.

OnlyFans could exist, sure, but like every other horny service ever it had a built-in time limit. When Visa/MC/Apple/etc notice how much porn money you’re doing, then the axe falls. Maybe you continue without the porn. Maybe you fold up. Either way all the pornmongers leave and look for a new way to get paid. In a few years they will be doing this again.

Patreon could have built OF, in theory, but this would require them to have more than the vaguest interest in actually building anything new. I’ve been using Patreon to get paid for my art since a few months after they launched and this is not a thing they have. I’m not sure they even actually have anyone who can do backend development any more. Mostly they just fuck up the front end every few years.


I don't mean that they have to do it with the same payment processor... different branding AND processor, sorry, I thought that was clear.

As to why, Patreon was ALSO the organization most apt to sniff the size of that market. Those were their current customers! If OnlyFans managed to glimpse to potential revenue and build their platform, Patreon would have been aware.

They had the platform, they had a known brand, they had relations with some of the clients, they knew how many people they were kicking out. This was such a huge advantage over anybody else.


Branding matters, too. It may be difficult to serve both horny and "no horny" consumers, so you need to decide which market you prefer.


I think its reasonable that a lot of creators don't want to distribute their work along side porn.

Does Only Fans have any non-porn content? I really don't know because in my head Only Fans is a place for porn.


Patreon has a shit ton of NSFW stuff so I'm not sure if this decision was overturned or if it's just limited to actual live actor pornography.


Maybe I’m biased due to the content I subscribe to, but Patreon seems to be going for a more sophisticated aesthetic. This comes through even in the name. The word Patreon conjures images of the Medici’s and “elevated” art forms. I think if they started to cater to the NSFW side of things it would result in brand confusion for producers and consumers.


https://www.patreon.com/policy/guidelines is the official rules.

A summary:

* mark horny stuff as 18+

* all horny posts must be patron-only

* drawings are okay but no photos/video of actual people going at it

* no bestiality, rape, kids, incest, necrophilia, or dubcon/noncon

As a creator of horny art I do not look forwards to the day when Visa/Mastercard/Apple/Google/etc leans on Patreon and says "hey we banned all horny content, you can either ban it too or you can quit working with us".


Patreon probably feared pressure from the Apple App Store.


I'm no entrepreneur but wouldn't a good way to solve this be to have two separate brands under the same platform?

Patreon and Patreon Red or something, where one is adult content only and the other is not.


As layoff announcements go, this one is pretty solid. Cuts immediately to the chase. No sugarcoating. Takes full responsibility. Offers pretty solid severance packages.

I can only hope that if my organization has to lay people off, they'd be half as kind as some of the recent ones have been (and not at all like others, such as Klarna).


Patreon's handling of expired cards is terrible.. people I know who used Patreon just lose subscribers because the flow for fixing an expired card basically doesn't exist (or didn't, maybe it's been fixed since). Those people left Patreon and won't be returning.

Their new engineering staff could fix that, for one.


Interesting. I haven't had to enter new data for any subscription service when a cc expires for years now. Somehow the new info gets relayed to the service without my input.


Certain credit card providers have a (paid?) service where companies like Patreon can poll for the updated details of any of the cards they have on file.

My card didn't automatically update and I can confirm that the site gets weirdly broken.


> "... I’m more confident than ever that the world needs a better economic system for creative people, and Patreon will keep building that system for creators over the decades ahead. However, the pandemic introduced volatility to the broader trend, starting with a rapid acceleration during COVID lockdowns. In response, 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. I take full responsibility for choosing that original path forward, and for the changes today, which will be very difficult for our team."

It's the same pattern at so many other companies now. Over-hiring during COVID (thinking what exactly? that people would forever stay locked up at home with nothing else to do with their money?), before waking up to the reality that things have gone back to normal and that there was never really a plan whatsoever for those hired. Asses were put in seats though, so there's that.


I wonder how much of it may just be "keeping up with competitors". You can lose a lot of ground in a year or two, and recovering that ground may be more costly than the additional hiring-and-firing cost.


> thinking what exactly? that people would forever stay locked up at home with nothing else to do with their money?

I wonder if this was Bay Area tech elite bias. Between the Bay Area being late to reopen and generous remote working options, decision makers might have planned for growth that matched where SF in the pandemic, but hadn't realized that most of the country had already moved on.


I agree with you in principle, but we now have the benefit of foresight.

Imagine Patreon's position during early covid: they had a firehose of money pointed at them. I'm sure they knew it will end, but not "when". They had to react to it, if for no other reason than to prevent a competitor from getting ahead.


>So within the next 10 minutes, teammates who will be leaving the company will receive a calendar invitation to a video call with a leader in your function and a teammate from the People team. In that meeting, you’ll review the details of your separation and have an opportunity to ask any questions you may have.

I would have sent the invite out beforehand to avoid the entire companying spending the next ten minutes in complete uncertainty about their futures.


On twitter a couple days ago it was said they're laying off their whole data security team.

https://twitter.com/wbm312/status/1567974063578185728?s=21&t...


It’s weird these companies grow this big. How many software engineers do you need to monthly bill a list of people and transfer it to a different list?

That’s like a single person saas.


If I had a nickle for every time someone on HN claims that a sizable company could be replaced by 1-5 devs, I'd have enough money to start a competitor to most of them that did it better with more devs/staff, as evidenced by the general lack of 1 person saas companies out there that solve more than a very niche problem.


AIUI OnlyFans actually did successfully compete pretty directly with Patreon for a while as a 3 dev company. (I assume they may have grown a little since then)


He's not wrong. Patreon's technical platform isn't cutting edge or unique and could be replicated fairly quickly by a small team in a month or two. Most of what makes Patreon what it is comes from the other parts of the company, i.e., the marketers, account managers, etc., that bring in the actual revenue.

Of course, that's also the reason why a tiny company can't just replace Patreon: it's not the tech that matters. It's the marketing and other people stuff that you just can't handle with a small team.

It's not a good sign that Patreon is doubling down on engineering and eliminating the positions that actually bring in revenue. That's a sign of a poorly managed company not understanding its value proposition. Keeping extra engineers on staff to create yet another cryptocurrency isn't going to save Patreon, but the absence of the two dozen plus marketers and account managers they just fired will be acutely felt as they go into the holiday season.


Is that true? I feel like every past discussion about Patreon, as well as from the folks I know who use it as artists, they're not really getting much in terms of marketing or assistance/management. I certainly have a hard time believing that they're making most of their money from their "services" outside of just relaying money.

Their discovery is pretty awful too. My understanding is that they're mostly viable because there's no easier way to solicit money as a podcast/youtube channel right now.


That's a problem with the people, not with the tech. They overhired without training people into the roles they were hired for.

On discovery: Tiktok, for example, is absolutely slaying Insta, Snap, and Twitter. Tiktok uses human curation; the other 3 use an algorithm.

Note that Patreon takes a % of all transactions, so the key driver is increasing transactions. They don't need fancy new tech for that; they need more human interaction.


Discord had small engineering team and they outperformed

Teams, Google's VoIPs, Skype, Ventrilo, TeamSpeak, Zoom


They've been pretty adamant about not chasing after business/enterprise sales and I bet this is a big reason why.

Enterprise pays the big bucks but also has way higher demands from support, higher expectations about downtime, and all the third party integration requests. It has to integrate with Jira, it has to integrate with Google Calendar, it has to integrate with this niche service that changes their API every month and doesn't care your contract with Dairy Queen relies on this integration working.


Okay but it doesn't seem like patreon needs to, or is even chasing after enterprise sales? At least in the b2c space it doesn't seem like you need a huge engineering team.


I meant that in response to why Discord can be so successful with 1% of the employees of other chat products. It's because they're not actually similar products. One is for casual chat (with no pretense of security) and one is for business chat.

It's not specifically about avoiding enterprise, it's about them recognizing what sort of business decisions are sustainable with small team capabilities. Enterprise chat adds a TON of requirements and harsher penalties for mistakes.

In Patreon's case, it's one of those business models that a small team just cannot survive in at scale.

Sure, storing some payment data in a database and charging a payment API once a month in a job queue is a weekend project. But then you get your first email about a stolen credit card being used. And one from Disney lawyers about how someone is using their Patreon account to sell Disney intellectual property. And an email from FBI because someone is using it to sell illegal images. And from creators whose account got hacked and all their payments redirected to a new bank account. Or the subscribers who want a refund because they're unhappy. Or the people who realize that if you say your credit card was stolen, you can access the exclusive content from any creator and get a refund the next day.


Have they outperformed Zoom and Teams? That feels like a stretch, even if I prefer Discord to either of them

Plus, they had a small team, but I met most of them back in the Hammer and Chisel days and they were already a 20 person team at that point at least.

I'm not at all trying to say you can't have a good product with a small company. It's the incessant "I could do this myself in a month. I won't actually do it, but I totally could" responses. Almost every company you've heard of isn't getting by on single-digit employees, let alone one very smart person.


>Have they outperformed Zoom and Teams? That feels like a stretch, even if I prefer Discord to either of them

Better product


I don't disagree with you, but Zoom is also providing a pretty different service, and Teams provides a lot of enterprise level stuff that Discord doesn't. Discord is better for us perhaps, but it's definitely doing worse as a matter of revenue.


The layoffs prove them right though no? Plenty of companies seem to have had layoffs without loss of profits


Only once they lay off another 400+ people. If anything, the fact that Jack had anyone but himself to lay off isn't proving OP right.

Being over-staffed is different from "one person can run this as a saas business"


What large company is beating the 5 person competitor in their industry?


Most of them? Can you give an example of a 5 person competitor competing with a large company?

And of those, how many of them can only do that because they're outsourcing most of their needs to some other company people regularly complain is bloated?


Craigslist has 50 employees, which is closer to 5 than 500.


And its lunch is slowly being eaten by facebook marketplace.


I hope this comment ages as well as it would if you had mentioned MySpace.


Craigslist is wildly profitable, but can't touch ebay or amazon.


It's amazing how consistently HN people underestimate the workload involved in basically any software product, and how often this blog post is relevant: https://danluu.com/sounds-easy/

> I can't think of a single large software company that doesn't regularly draw internet comments of the form “What do all the employees do? I could build their product myself.”

Products are nearly always more complicated internally than it appears to the user. Indeed, often the very ease of use that you see as an end user is because of higher complexity on the inside.


People who say this have never worked in an enterprise, global software company. Or if they did, they may not be working on key projects.

Just SCALE ALONE is enough to expand a group of engineers a significant amount. A personal project is fine to run 1 AWS or Digital Ocean instance to run the application, database. But global distribution that has to support tens of thousands, hundreds of thousands, or even million+ users concurrently globally? It's a big orchestration of applications and services that requires much larger teams.

Add in payment services and managing those integrations. Then, given that you're a global company and have to operate in multiple countries you have all sorts of regulatory compliance requirements. Who oversees that? Who manages all of these requirements? Not a single dev or a small team.


>People who say this have never worked in an enterprise, global software company.

On the other hand

How much friction there's between decision makers and people writing code in those companies?

How much time is wasted on meetings, teaching new people every month, etc, etc?

Sorry, but I really can see scenerios where 5 skilled engineers with domain knowledge can outperform 25-50 that need meetings to agree on everything


How many people worked at WhatsApp/Instagram before acq?


> to monthly bill a list of people and transfer it to a different list

Sounds like a fantastic service to use for fraud or money laundering. It would be a shame if you had to dedicate a ton of employees towards preventing that. ;)


1 is bit low with number of customers that is both creators and users. But I would see the right number reasonably be under 100. With some geographical distribution.


I can tell you that many people I know are abandoning Patreon for their support of Russian patreons. This statement didn't help: https://www.businessinsider.com/why-patreon-continued-to-sup...

And their response is not so great: https://support.patreon.com/hc/en-us/articles/4553920132877-....

I'm sure the layoffs are not entirely related, but having this stance didn't help.


Their statement makes sense to me


Recently signed up for patreon but couldn't figure out a payment method. The only option available, paypal, would succeed and I'd be redirected back to the merchant (patreon) but then neither show up in my patreon account nor on the paypal side - and I'd rather avoid giving paypal a cut so this was already a last resort. Open source liberapay was a no brainer (for K9 and F-Droid iirc) but very few creators have a liberapay. Surely there's more going on than this, but the news doesn't surprise me with this amount of friction and very handful of payment methods available. It'll work for the 90% or they'd not be in business at all, but still.


Maybe that depends on your location? I can use card (debit/credit) and also PayPal. You don't see "add card" in the payment methods page?


For that I'd need to first get a credit card. Most people here don't have one because you never need it here, but indeed for paying for american stuff I tried getting one. Happened to be after moving to Germany. Was denied, don't have a credit score (not here at least, and afaik the Netherlands doesn't have this system of random magic score calculations without actually being indebted) and neutral wasn't good enough. Like I said, paypal really was the last resort. I'd be happy for them to just draw from my IBAN directly (basically everyone in Europe has this, banks in Germany are required to give you one regardless of credit score because, indeed, it's essential for modern life) or to send them cash in the mail like mulvad or use the here-common iDeal system, or manually transfer it or...


It's not very clear from your comment where exactly you are, but in The Netherlands credit cards are quite common — almost everyone I know has one, and I was raised here.


I never see anyone, always normal debit cards instead of paying on credit (loan), and the first question you get when your card's color looks unfamiliar and it doesn't work on the first try is whether it's a credit card because those aren't commonly supported. It's virtually nonexistent. My dad has one for booking hotels abroad afaik, but while in NL you just never need it and I never see them around.


Interesting... As comments have pointed out already, this might have to do with the fact that companies kept on hiring more people to deal with the influx of customers during the pandemic.

I don't question it, but I most definitely question how many of these companies blindly hired these people without spending a second thinking about consequences of their actions. Shopify was recently in the news for the same reason[0].

[0]: https://news.ycombinator.com/item?id=32237574


TIL: Jack Conte is the keyboard player in Pomplamoose. Weird.


he was that before Patreon was a thing, and they're connected: https://www.inc.com/alexa-von-tobel/jack-conte-youtube-patre...


This seems to simply be how Patreon operates: yearly layoffs


Yeah. They have had a major layoff every year for the last 3 years. Are they just engineering a kind of forced unregretted attrition? The alternative is that it's just complete chaos in there.


It works for Amazon.


Does anyone know if they have freezed hiring in general? I'm literally in an interview loop process for senior engineer with them right now. Lmao.


Run while you can!


It's a fine message and generous severance, but people need to wake up to the reality that companies don't really care about them when making plans for the future. Was it really so hard to predict a minor ~15% downturn after a period of lavish, extraordinary exuberance? Conservative, controlled, measured headcount growth is just not a consideration, as we've seen time and time again.


The broader economy was basically saying here is free money, grow the business at all costs, worry about growth then later we'll worry about profit. Now due to inflation the Fed has ended the free money era, and business plans have to change. Expect a lot more of these posts over the next few months.


They laid off the entire security team last week


Glad to see they're really thinking long term. After getting rid of their security team, they should maybe rethink those pesky fire extinguishers that have done nothing but expire.


I had no idea that Patron employed so many people.

I keep getting surprised by that. Companies are employing a lot more people than I expected.

Parts of it is down to pure ignorance and not understanding the complexity inherent in the domain, but a part of it also bloat.

Is it a status thing to employe a lot of people? A hope of sustaining financial growth by increasing headcount?


"I take full responsibility" - ok, what's the responsibility you take?


*I* take responsibility by having *you* be unemployed. It makes sense if you don't think about it.


Probably a better link than whatever the Instagram post is (behind a login): https://blog.patreon.com/a-note-from-jack


Looks like most of the layoffs are in marketing and sales, and that they're still hiring on engineering and product. Honestly, I'm surprised they had marketing and sales people to begin with. Those sorts of efforts pay off most with big-name, high-end artists who probably don't need monthly patrons to be successful. Focusing in improving the product seems like a smarter move, especially given how janky their product was until quite recently.


These "user generated content companies" spend a lot of time and money marketing to the content creators (Patreon is defending against the built-in platform monetization of things like Youtube and Twitch, et al) and getting big name content creators on their platform (see some of the leaks related to Onlyfans, etc al).


Hmm -- how is Gumroad doing? Is their business affected by the same economic slowdown issues, or did they find another way forward?


It'd be good to see Patreon face some more serious competition. They are by far the dominant force in their segment.


Not being in the know, what are the serious competitors to Patreon? Utreon? Buy Me a Coffee? Youtube itself?


https://coil.com/ for a "self-hosted" solution


Apple and Spotify doing podcast subscriptions maybe?


As a new user of Patreon (literally this week is the first time I've used it) I finally signed up because a content creator is posting their videos to Patreon a day early. Youtube could solve that problem.

Does anyone have any other examples of what Patreon does for them?


It’s cross platform and PayPal hasn’t decided to eat it as a feature yet. That’s it.


OnlyFans


80 / .17 = 470 employees.

How does Patreon need this many employees? It really doesn't seem like that much of an operation.


I would guess >300 of those employees aren't working on the core product.


creator support


What's the growth from graphtreon vs these layoffs. Most top patreons have quadrupled or more monthly earnings from 2020. This could just be a netflix style "thanks for the hardwork, goodbye".


Feel like the real story is a bunch of competitors are eating their lunch.


Who are those competitors? The subject company is tho only one I know of like this. But I am not really active in the creative space so I'm ignorant.


Subscribestar, which I'm much more of a fan of since they have more common sense rules around NSFW art.


Common sense rules == completely banning all NSFW work?

https://www.subscribestar.com/prohibited_content

I'm all for having some SFW platforms, but let's not pretend that there isn't a dramatic, dramatic demand for NSFW content, and that banning it is nothing short of prudish.


No? Last time I understood from my artist friends who do kinky NSFW art (as do I), they use SubscribeStar's NSFW version, right over here if you missed it - (https://subscribestar.adult/)


I'm no fan of banning such things, but an outright ban is much clearer and more comprehensible than Patreon's very murky and subjective (to the point where it's almost impossible that they're not selectively applied, if only by accident) rules.


They have two URL's, one for adult content and one for SFW content. You're looking at the SFW rules


I don't think it has anything to do with common sense, from reading their guidelines it sounds like they just ban NSFW stuff all together.


Youtube and Facebook both offer monthly subscription plans for creators.


Which hardly anyone seems to use, at least for YouTube. I watch too much YouTube for my own good, and I can't remember the last time someone encouraged viewers to donate money on a recurring basis via any company except Patreon.


And the reason for this is likely that youtube takes at least 30% of the money, while patreon is around 5-8%


Gumroad is becoming a big one


ko-fi.com seems to morph more and more into a competitor.


Well, that seems pretty OK for a layoff mail.

Bit confused by reducing staff spend while increasing spending on engineering & product. Surely for a software company those are roughly the same thing?


Structural inflation is primarily driven by blue collar wages. Going to be a lot of white collar casualties on the way back to 2%, given that rising discount rates hits them first


Was there a security breach? I've gotten several "Login attempted on your account; was this you?" emails 2 days ago. I didn't attempt to log in.


It seems like the claims that "there's plenty of work out there" are finally self-correcting. The worker continues to be spited.


> We are offering our nine Dublin engineering teammates relocation packages to join these US-based teams.

Do they get a payrise to match US salaries?


I would argue this is a "soft redundancy" for non US-based teams. There would be salary adjustments for sure, but even that rarely makes a convincing argument to uproot your whole life and move countries.


I hope their Precor acquisition remains unscathed, perhaps they spin it off so it can continue to build excellent elipticals.


This is interesting, usually it isn't the marketing team that gets gutted first, a reverse of the norm.


I've heard rumors that Meta and Google have massive layoffs coming as well. Good luck out there


I've heard the same, Meta for sure, and a few folks at Goog have told me as well they are coming. For google this will be the first time they have ever done layoffs in the company history(2009 had 200 folks leave so not really layoffs so to speak) so that tells you the scale of this tech downturn.


I have heard that the 2009 layoffs were limited to recruiting. If these layoffs occur, they may be the company's first engineering layoffs.

I find it surprising that they are considering layoffs. There have been a number of articles about Sundar's concerns over productivity [1,2,3], but layoffs have a tendency to reduce moral and productivity.

[1] https://news.ycombinator.com/item?id=32515458 [2] https://news.ycombinator.com/item?id=32322131 [3] https://news.ycombinator.com/item?id=32816105


2009 layoffs were technically just a bunch of radio DJs that were hired into a product around revolutionizing radio and then had nowhere else to go in the company when their project was canceled. The recruiters let go were contractors, and Google just terminated their contracts.


That's genuinely anxiety-inducing to hear. I have several friends who have signed offers with Google, with start dates set within the next few weeks/months.

Really hoping they don't start pulling offers. I can't put my finger on why, but somehow that seems like it'd be even more cruel than layoffs.


Pulling offers is always considered a _very_ bad look. I would be extremely surprised if Google did such a thing given the optics, but it wouldn't be the first time Google has surprised me with it's stupidity.


You can't have your stock down 60% YoY (META) without consequence. There is a whole lot of fat at both of these companies (and really all large firms that never had any bad quarters) and a reckoning has to happen


You absolutely can. Stock price is really meaningless as far as the day to day life of a company is concerned- if your cash flows haven't changed, and the market has just decided to shit on you for a bit for irrational reasons there are no consequences other than maybe looking into whether a buyback makes sense.

Equity markets are often irrational and wrong. IE Covid- essentially every stock was down significantly in March of 2020, not realizing that some businesses will actually benefit from the pandemic.

That said, your statement about fat at these companies is true, and its probably been long past time that they clean out some dead wood.


> Stock price is really meaningless as far as the day to day life of a company is concerned

Not when significant part of your employee compensation is equity-based.


The market is going to do what it is going to do, I am not sure if you mean that from an employee based perspective or from a corporate perspective, but either should not matter- I guess with a big disclaimer that I am assuming that your core business is still doing well, but its just the "market" that has decided you are out of favor.

From a corporate perspective, you are buying a fixed dollar amount of shares to compensate your employees- I haven't heard of a fixed number of shares being offered as compensation in years for pubic companies. This does not affect your cashflow, just the number of shares being purchased in the open market.

From an employee perspective, its definitely not fun to see the value of your grants drop by 50%. It should only really affect your decision to leave or not if you feel the drop is permanent, or just a temporary blip. IE if I was hired at Peloton in 2020, the stock has dropped 95% and while it will likely bounce back a decent amount, the equity part of your compensation is essentially worthless and not going to be a golden handcuff that will keep you around. Google/Alphabet, its down about 30% but thats likely just an overreaction and is to some extent welcome as you get more shares in your grant... it wouldn't stress me out at all- maybe if I was looking to cash out and buy a house right now, but this was a risk that was always there.


Mark is completely unaccountable to investors. He can do whatever he wants as long as he has good faith reason to believe it will benefit shareholders.


This is confusing to read. Shareholders are investors.


Facebook has a dual class share structure giving Zuckerberg >50% of the votes.


That’s a long 10 mins to wait for an email to see if you’ve still got a job or not.


Didn't they just fired their whole security team a few weeks ago?



Doing this on Instagram seems… off. Can’t put my finger in it.


Agreed. This and the recent controversy around the HyperSocial CEO posting an emotional layoff post on LinkedIn makes me wonder if the new trend in layoffs is to try to make us relate more with the CEO than the laid off employees and take some heat off them.


I think it was first posted on their blog here: https://blog.patreon.com/a-note-from-jack


Are we supposed to know who Jack is?

Sounds like someone is in serious need of an ego check.


> Are we supposed to know who Jack is?

I should imagine the people that blog post is relevant to know who he is, yes.


Patreon's creator and CEO.


Ask the person who posted the Instagram post at HN instead of the Patreon's official blog's post.


AFAICT, he told the team separately, and is just using IG to announce publicly. I don't see how that is any worse than the usual dry press release.


Because companies like Patreon come and go. They know it, we know it. So they grasp at straws for a fleeting moment of popularity.


Wait a little longer and they'll be announced on TikTok


Its because Instagram is for self promotion.


This is legitimate feeling, maybe because not all your employees might have Instagram. We can't assume it wasn't also done on internal channels, though?


I guess undercutting Vimeo wasn't cheap


I have no love lost for that company, so while I feel bad for the workers, I would love to see the company as a whole go under and a better alternative emerge.


"Over the last 9 months, we’ve seen the tech industry – and the whole economy – change considerably."

have we, though?


I hope you all are starting to see the coming depression. Not recession, depression.

I am way early on this, I get it.


As an insult to injury this was announced on his Instagram.

So professional! /s


It was announced on the Patreon blog, the poster chose to link to Instagram (annoyingly, for those of us not on Instagram).

https://blog.patreon.com/a-note-from-jack

I assume OP expected the blog post to be taken down or changed, so they captured it and linked to the capture instead of the original. I feel like the protocol for this should be to make a capture, post a link to it as a comment in the thread, and link to the original in the post.


The pandemic is over and so are most remote "jobs" that people started doing on Onlyfans, Patreon, etc. a couple years ago.


Your quoting suggests that you think what people on onlyfans and patreon do aren't "real jobs", but in fact to succeed in those spaces needs very hard work.


Hard work alone doesn't make something a job. If someone was offering a professional level of service (delivering what they said they would, on time, and issuing refunds when they didn't without their clients having to ask for it) then I'd say they were doing a "real job". Most of onlyfans/patreon aren't, IME.


Digging a big hole then filling it back in is "very hard work" too but that doesn't make it a real job.


Construction companies would like a word with you.


What, pray tell, qualifies a job as a "real" job?


I'd say something like people are actually willing to pay the average or even the worst job-doer something resembling a living wage.

If the stats from things like Patreon are to believed (and filtering out the "dead weight" of creators who don't post or have given up without closing their account) there's a serious "top 1% of creators make XX% of the revenue" problem.

Which means that for a small fraction, it's a job, for the vast majority it's a money-losing hobby.


Do you not believe working in retail or restaurants are real jobs? Because the vast majority of them are not paid a living wage in the US and have to rely on having multiple jobs or welfare. Walmart even teaches you how to sign up for welfare as an employee


Those are real jobs and should be paid a living wage or eliminated if that's entirely unfeasible. There can be arguments at the edges but I think people generally agree on that.

And even if you don't, certainly an "industry" where 99% of the people "employed" don't even make the poverty line or make back their expenses (patreon and only fans would fall here) wouldn't. (The people trying to 'make it big' are probably moonlighting as retail/restuarant anyway, just as all those who tried to make it in Hollywood did in years past).

There's certainly major abuses but the 1099 and "self employed" world is even more full of them than the W4 world.


By that definition, real jobs are doctor, dentist, and software developer. We don't pay the worst in most jobs anything more than the legal minimum.


Yeah, "adds value to the world," "works hard," and "pays well" are radically different metrics.


Oh, you know, Javascript Ninja, Devops Rockstar, a real job.

/s


It's not a real job because nobody will pay you for that because nobody gets value from that. You get paid by people = you provide value in the economic sense (do not always align with the moral or ethical sense, which might be the source of your dislike for the job).


And yet, the Hoover Dam was a job very well done.


> but in fact to succeed in those spaces needs very hard work.

But that doesn't make it a job. You could do hard work in moving a mountain but that's not a job.

Needless to say, earning money off of your looks (something you didn't work hard to gain in the first place) doesn't qualify as hard-working job.


>Needless to say, earning money off of your looks (something you didn't work hard to gain in the first place) doesn't qualify as hard-working job.

Even if you're very conventionally attractive, you need to put in a lot of networking and marketing before you can make money off of "your looks". Even then, you don't just sit back and let your looks do everything.

Porn stars generally spend a couple hours DAILY in the gym. Then there's all of the events you have to do to remain relevant in social circles. Then there's actual shooting. But before that there's hair and makeup. Then there's outfits. Selecting garments that match your personal style and also are sexy enough to excite your fans isn't easy and it usually isn't cheap.

Going through all of that to get paid by the fans is absolutely a job. If the fans didn't pay, it wouldn't be a job.


> earning money off of your looks I'm assuming your taking about the sex workers of OnlyFans. I find your attitudes a bit dismissive and offensive. These are real humans with real feelings that you're talking about with such little regard.

Plus, I earn money off of my natural intelligence. I didn't do anything to gain it in the first place, I just happened to have intelligent parents.

> doesn't qualify as hard-working job

Two questions:

1. Why doesn't it qualify as a job if they are earning income?

2. Why should someone have to "work hard" to earn a living? If have a high-value easy-to-sell product, then why work harder than you need to?


If you get paid moving that mountain, it would be a job.


It takes a LOT of work to "earn a living off your looks"

Ignoring the time spent setting up shoots, editing, engagement, etc, and focusing just on "looks", you have to spend a lot of time on working out, make up, shaving, putting together outfits, etc.

If you think that looking good is something that doesn't take any hard work, it's because you've never tried to put in that work yourself.


Anything you do to make yourself look good has only incremental effect; you must already have a "good" foundation (genetics, race, etc.)

An African American woman, for example, has almost zero chance of making it to the top 10 p$rnstars list, no matter how much she put effort and time to prepare herself.

Some things are just the realities of the world. Thinking otherwise makes you delusional.


What are you responding to? (I feel like I'm asking this a lot here.) The comment to which you're apparently responding was only saying that it takes a lot of work to make a living off of your looks; they were silent on whether you need to have good genetics, the correct skin color, or anything else.


"earning money off of your looks (something you didn't work hard to gain in the first place) ....."

If you have a cognitive aptitude for mathematics, you didn't "earn" that either - everything in some way or another is part of your birthright and privilege, both nature and nurture.

If you genuinely believe that the mind is somehow magically distinct from the same genetic system that gave you your physique, I'm afraid you're the delusional one.


> But that doesn't make it a job. You could do hard work in moving a mountain but that's not a job.

Job (n):

1. a paid position of regular employment.

2. a task or piece of work, especially one that is paid.

---

It seems to fit #2 perfectly (exhibiting to an audience), and #1 can be met based on e.g corporate structure (subscription pay into an LLC that normalizes the salary etc)

I'd argue that it's in fact potentially "skilled labor" in that it's not obvious what it takes to produce content that brings regular subscribers. Tons of adult content creators burn out and pivot because they can't get traction.


> But that doesn't make it a job. You could do hard work in moving a mountain but that's not a job.

If people are willingly paying you to do something, that's a good job as any other job.


What a very bizarre definition of a job


If you knew how much some of those people who are doing 'remote jobs' on Only Fans, Patreon now...


I wonder if it's somehow related to some allegations floating around today (e.g. https://twitter.com/TizzyEnt/status/1569439160561442817 ) of Patreon dealing with part of the revenue coming from effectively selling risque pictures of minors.




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