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<\/p>\nThe company says it’s offering voluntary buyouts first<\/p>\n
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The union for Kickstarter employees reached an agreement with management on Friday which provides protections for laid-off workers, the union said in a press release<\/a>. The crowdfunding company announced in an internal memo April 20th<\/a> it would likely seek layoffs, along with other cost-cutting measures. CEO Aziz Hasan wrote in the memo that Kickstarter had seen a 35 percent drop in new crowdfunding projects on the site in the past several weeks, with “no clear sign of rebound.”<\/p>\n Kickstarter United, the union that represents 60 percent of the company’s 140 employees, said the agreement includes four months of severance pay for all laid-off employees, a release from any non-compete agreements for anyone who accepts severance, and recall rights for one year. The company will continue healthcare coverage for any laid-off employees for up to six months, depending on salary.<\/p>\n Kickstarter spokesperson David Gallagher said in an email to The Verge<\/em> on Saturday that the company was offering voluntary buyouts to union members, which includes the ability to opt out of health insurance coverage and receive partial payment instead.<\/p>\n “We need to put Kickstarter in a stronger position to ride out this uncertainty so it can continue to support its mission, which is to help bring creative projects to life,” Gallagher said. He added that non-union employees were receiving a similar offer. Once the company knows who is interested in a buyout it will be able to determine how many layoffs may be required, Gallagher said.<\/p>\n Kickstarter workers successfully voted to unionize<\/a> in February. They’re represented by the Office and Professional Employees International Union (OPEIU).<\/p>\n Hasan said in the April 20th memo that Kickstarter brought in $1.27 million in after-tax profit last year, which has been reinvested back into the business. He mentioned other cost-cutting measures besides layoffs, including a reduction in senior management salaries and not hiring for some vacant positions.<\/p>\n “While we are disappointed with the layoffs announced by Kickstarter management, we are proud to stand shoulder-to-shoulder with our entire union family in this multifaceted fight for our families’ futures, and thankful for Kickstarter management’s willingness to negotiate a fair deal for their impacted employees,” OPEIU President and Local 153 Business Manager Richard Lanigan said in a statement.<\/p>\n The union said layoffs may include up to 45 percent of Kickstarter employees, but Gallagher said the company “hasn’t made any statements about the potential scale of the layoffs.”<\/p>\n Tags:<\/b> Kim Lyons<\/p>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":" The company says it’s offering voluntary buyouts first The union for Kickstarter employees reached an agreement with management on Friday which provides protections for laid-off workers, the union said in a press release. The crowdfunding company announced in an internal memo April 20th it would likely seek layoffs, along with other cost-cutting measures. CEO Aziz Hasan wrote in … Continue reading Kickstarter union reaches agreement with management for laid-off workers<\/span><\/a> Continue Reading See Campaign: <\/strong>https:\/\/www.prnewswire.com\/news-releases\/kickstarter-united-reaches-agreement-with-management-to-support-laid-off-members-301051332.html<\/a>
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Kim Lyons<\/p>\n
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