> "... 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.
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.