Kickstarter's live projects number has dropped 35 per cent year-on-year.
As reported by The Verge, the crowdfunding firm's CEO Aziz Hasan has admitted that there's no indication of things bouncing back, either.
As a result, the company needs to prepare to cut costs where it can. Last year, Kickstarter earned $1.27 million in after-tax profit. However, that money has already been reinvested in the first four months of 2020.
"The live project count is about 35 per cent below what it was at this time last year with no clear sign of rebound," said Hasan.
"As a result, our pledge volume and revenue are tracking sharply down as well. Setting the business up for the future will require significant cost-cutting."
The sharp drop in numbers could lead to potential layoffs for the company.
"We must look more broadly at ways to restructure the business, including potential layoffs across teams and at all levels of staff," said Hasan.
Hasan and other senior members of the company have had their salaries reduced. A "hiring cap" policy has also been to prevent open positions from being automatically filled.
"We're going to navigate this thoughtfully and transparently to allay that as best we can," said Hasan.
"Kickstarter has an essential role to play for independent creators right now as a source of financial support. And the art, creativity, and innovation that they bring to life is essential to a healthy society – particularly during times like these."