According to reports, “US version of the public account” Substack CEO Chris Best (Chris Best) said in an internal email on Wednesday that the company decided to lay off 13 employees due to the gloomy economic outlook.
A Substack spokesman said the layoffs represent about 14 percent of the company’s workforce. The company’s digital platform lets writers publish free or paid press releases, and the San Francisco startup takes about 10 percent of the subscription fee.
Best said he and his two co-founders chose to cut jobs to allow Substack to be less reliant on additional funding in the future, especially as the market downturn in recent months has sent tech stocks sharply lower. Venture capital funds and deal sizes have also fallen sharply over the past month, the latest data shows.
“The macroeconomic outlook has become increasingly uncertain in recent weeks, so it is clear that we should prepare for a challenging period that could last several years,” Best wrote in an email.
Best also said he was “extremely sorry” for reneging on his promise. “I told everyone a while ago that we’re going to expand our team, not make layoffs,” he wrote.
A spokesperson for Substack, which has attracted prominent independent writers including Matt Yglesias, has raised about $83 million since its launch in 2017.