Kickstarter may cut up to 45 percent of its workforce

Vonkara1 via Getty Images Kickstarter has discussed layoffs as the COVID-19 pandemic ravages

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Montreal, Canada - October 15, 2014. Kickstarter home page displayed on a iPod Touch 5th generation screen. Kickstarter is a popular website for crowd funding projects that are submitted by project creators.
Vonkara1 via Getty Images

Kickstarter has discussed layoffs as the COVID-19 pandemic ravages its crowdfunding business, and it now looks like those job cuts may be particularly severe. In a message to Gizmodo, the company has confirmed plans to cut a large portion of its workforce after the OPEIU (the union representing Kickstarter employees) said it had ratified a layoff agreement on May 1st. The union said layoffs could affect up to 45 percent of the workforce, according to a notice sent to Engadget, although Kickstarter disputes that number when it doesn’t factor in voluntary buyouts.

The terms could ensure a relatively soft landing for those who leave. The arrangement provides four months of severance pay and either six (for those earning $110,001 or less) or four (for those above $110,001) months of healthcare coverage. They’ll be free to work for competitors the moment they accept severance, and they’ll have “recall rights” to return to Kickstarter if a job similar to theirs opens up within the next year.

As with other tech industry layoffs during the pandemic, this comes down to a matter of basic survival. It’s not clear when it’ll be safe for crowdfunding projects that depend on human-to-human interaction, and cuts like this may help Kickstarter endure that period of uncertainty.

In this article: kickstarter, crowdfunding, jobs, layoffs, internet, Covid-19, coronavirus, kickstarter united, OPEIU, news, gear
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