Kickstarter is reducing its workforce by 39% through layoffs and voluntary buyouts

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Business Insider article by Tyler Sonnemaker, dated 2020-05-13, reporting that Kickstarter is reducing its 140-person global workforce by 39% through voluntary buyouts and layoffs due to the economic fallout from the coronavirus pandemic, as confirmed by a spokesperson. It reports a notice filed with New York's labor department that Kickstarter is laying off 25 employees in the state, effective May 15. It states that, under a deal between Kickstarter's union and the company, union members being let go receive four months' pay, four months of healthcare coverage for employees making more than $110,001 and six months for those making that amount or less, termination of non-compete agreements, and a chance to reclaim their job within a year.

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Kickstarter is reducing its workforce by 39% through layoffs and voluntary buyouts as crowdfunding projects plummet during the pandemic

By Tyler Sonnemaker

Crowdfunding platform Kickstarter has laid off a significant part of its workforce due to COVID-19. Hollis Johnson

2020-05-13T19:45:00.000Z

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Kickstarter is reducing the size of its 140-person global workforce by 39% due to the economic fallout from the coronavirus pandemic, the company confirmed to Business Insider on Wednesday.

"Through a combination of voluntary buyouts and layoffs, we are reducing the number of roles at the company by 39%, across all levels and departments. The majority of those leaving chose voluntary separation packages, and everyone affected is staying on through this week through the transition," a spokesperson told Business Insider in an emailed statement.

In a notice filed with New York's labor department last week, Kickstarter said it is laying off 25 employees in the state, effective May 15, citing "unforeseeable business circumstances prompted by COVID-19." However, the filing doesn't include an international employee who departed the company or staff who left voluntarily as part of the buyouts, the spokesperson said.

"We are saying goodbye to colleagues and that is never easy. But we believe this agreement offers security to those we are letting go, and sets Kickstarter up to weather this crisis and continue to be the place where people bring their creative projects to life," the spokesperson told Business Insider.

In April, CEO Aziz Hasan told employees in an internal memo that the crowdfunding platform had seen projects drop by 35% from the same time a year earlier and, despite having taken several cost-cutting measures already, that it was considering layoffs, The Verge reported.

As part of a deal reached earlier in May between Kickstarter's union and the company, union members being let go will receive a severance package that includes: four months' pay, four months of healthcare coverage for employees who make more than $110,001 and six months for those making that amount or less, termination of their non-compete agreements, and a chance to reclaim their job (or a similar one) if Kickstarter brings it back within a year.

Non-union employees will receive "similar packages," the spokesperson said.

Kickstarter employees in February became the first full-time tech workers to unionize as more across the industry look to organize, becoming members of the Office and Professional Employees International Union.

Kickstarter is the latest in a string of venture-backed startups to announce sweeping layoffs after seeing business slow due to the coronavirus pandemic. Uber , Lyft , and Airbnb have all cut significant amounts of their workforces in recent weeks.

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Tyler Sonnemaker

Tyler Sonnemaker was a reporter covering the gig economy, labor and workforce issues, and other breaking tech and business news. Expertise Tech and labor policy; rideshare, delivery, and contract/gig workers; workplace discrimination and harassment; and companies such as Airbnb, Amazon, DoorDash, Facebook, Google, GrubHub, Instacart, Lyft, Postmates, Shipt, and Uber. Popular articles 30 current and former Mailchimp employees detail the conditions that led to a 'mass exodus' of women and people of color Amazon's victory against a union drive in Alabama proved workers want better workplaces, but America's labor laws are too broken to help them get that, experts say Uber and Lyft drivers who say they don't want to drive for the ride-share companies right now are holding out for higher pay and better working conditions. Others say they may never return. Uber promised to pay drivers who couldn't work because of the coronavirus. But drivers say Uber has been closing their accounts after they seek sick pay, and then ignoring or rejecting their claims. 2020 brought a wave of discrimination and harassment allegations against major companies like Amazon, McDonald's, and Pinterest. These are some of the year's high-profile legal battles. A major grocery store called its workers 'first responders' early in the pandemic. Now, it's making the 'strategic decision' to ditch in-house delivery in favor of contractors.

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