Corona 19 seems to have a serious impact on crowdfunding as well. Reportedly, Kickstarter started talking with the union with the intention of being fired.
Kickstarter said that the number of projects currently underway has decreased by as much as 35% from the same period last year. Not only that, there are no clear signs of recovery. Kickstarter’s profits, including commissions, are also decreasing, and the profits obtained last year are already being reinvested in the business as of April. Therefore, although several measures were taken, such as reducing the remuneration of executives, including the CEO and the board of directors, service continuity was insufficient, and consultations with the union, including possible layoffs, were initiated.
Kickstarter employees formed a labor union in February, and unexpectedly, this issue became the first collective bargaining. Kickstarter is in charge of providing financial support for creators. It is said that cost cuts, including labor costs, are inevitable to endure for months or years in the current state. Kickstarter is also focusing on small projects that can be done with home work in order to increase the current shrinking project even a little. Related information can be found here .