Substack has decided to lay off 13 people, around 14% of the company, which employs 94 people, to reach profitability without relying on fundraising amid a weak economy.
Substack’s co-founder and CEO Chris Best informed staffers in a note, letting them know of their decision to part ways with some of their co-workers.
“Our goal is to make Substack robust even in the toughest market conditions and to set the company up for long-term success without relying on raising money — or, at least, doing so only on our time and our terms,” Best wrote in a memo shared by Axios.
The layoffs were across human resources, support, and operations, the company’s vice president of communications. Executives decided that Substack would be better served not to depend on fundraising, either for stability or growth.
“In recent weeks, the macroeconomic outlook has become increasingly uncertain, making it clear that we should be prepared for a period of challenging conditions that could last years,” Wrote said.
“By refocusing our team and financial planning, we can fund our investments from our growing business while remaining a reliable partner for the writers who are building their own businesses on our platform.”
Despite the 13 layoffs, Substack continues to proceed with new products and features since the company still has funds in the bank as they attempt to fuel growth.
“Substack remains in a strong position. We continue to grow, we have a business model that works, and we have money in the bank. But the way we play to win in 2022 and beyond is different from the way we were playing in 2021,” Best noted.
Eduardo Razo is the Assistant Content Editor for BNM, which includes writing daily news stories on the news media industry. He can be found on Twitter @eddierazo_ or you can reach him by email at eddie1991razo@gmail.com.
