The number of live Kickstarter projects has dropped 35% year-over-year.
As The Verge reported, crowdfunding company CEO Aziz Hasan admitted that there was no indication of a rebound either.
Therefore, the business must be prepared to cut costs where it can. Last year, Kickstarter made an after-tax profit of $ 1.27 million. However, this money has already been reinvested in the first four months of 2020.
“The number of live projects is about 35 percent lower than it was at the same time last year with no clear signs of rebound,” said Hasan.
“As a result, the volume of our commitments and our revenues are also dropping sharply. Setting up the business for the future will require significant cost reductions. “
The sharp drop in staff could lead to potential layoffs for the company.
“We need to look more broadly at ways to restructure the company, including potential layoffs within teams and at all levels of staff,” said Hasan.
Hasan and other senior executives of the company have had their wages reduced. A “hiring cap” policy has also been to prevent open positions from being automatically filled.
“We will navigate it in a thoughtful and transparent manner to dissipate as best we can,” said Hasan.
“Kickstarter has a key role to play for independent creators as a source of financial support. And the art, creativity and innovation they bring to life are essential to a healthy society – especially at times like these. “
In February, Kickstarter became the first large technology company in the United States to unionize. Kickstarter video game campaigns reportedly grossed $ 16.3 million.
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