Creator economy startups continue layoff spree

Ironic that so many of these companies were "unicorns."

Basically what we're seeing is that VCs inflated their value, and now their lack of value is being revealed when people don't want to spend money on frivolous crap. The creator economy is limping but not dead yet.

It makes sense that, with inflation, people aren't as keen to pay their favorite creators $10/month to see them paint their nails or play a video game. The reckoning is here.

It's not just that, but hiring is slowing down as well.

Businesses are also increasingly fearing that a recession is coming, so they're preparing accordingly.

What's happening to the creator economy? Is this simply the economic downturn / impending recession or is it the oft-hyped creator economy starting to tank?

I think interest in the creator economy wasn't entirely unfounded, but it was way overhyped. the companies that survive will be stronger; the weak and superficial will die off.

So far, these creator economy startups have announced layoffs:

• Lightricks laid off 12% of its workforce (80 people)
• Substack laid off 14% of its workforce (13 people)
• Picsart laid off 8% of its workforce (90 people)
• Cameo laid off 25% of its workforce (87 people)
• MasterClass lays off 20% of its workforce (120 people)
• Jellysmack laid off 8% of its workforce (80+ people)
• Community laid off about 40 staffers