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There is a 35% drop in new projects on Kickstarter. Company thinks about redundancies

One of the most popular crowdfunding platforms, Kickstarter, is experiencing difficulties due to the COVID-19 pandemic. The company depends on the percentages of funds raised by the projects inserted in the platform and successfully financed, but announced a 35% drop in them. Kickstarter CEO Aziz Hasan wrote an internal memo referring to the write-off of new projects, resulting in less revenue for the company, and without a sign of a turnaround soon.

The management of the company started conversations with its 140 employees, for potential dismissals. According to The Verge, the majority of workers created a union in February, covering about 60% employees, considered an unstoppable step in the technological industry. The process even generated conflicts with the management of the company, leading to the dismissal of two workers linked to the formation of the union, even though Kickstarter defended itself that the motivation was the poor performance of its functions.

In the letter to workers, Aziz Hasan says that he is looking for solutions to restructure the business, which includes potential redundancies between the teams and at different levels of functions. The businessman says that last year the company had revenues of 1.27 million dollars, but that this amount has already been reinvested in the platform. In addition to possible redundancies, it is planning to reduce wages, including yours, to cancel the recruitment of open positions, as well as to make budget cuts where possible.

Kickstarter has been working to encourage creators to activate their projects during the pandemic, especially small-scale projects that can be carried out from home. But it is also on the lookout for creators looking to profit from COVID-19, whether in sharing misinformation or miracle solutions for healing.