Kickstarter announced in an internal memo today that it’s likely going to lay off employees. CEO Aziz Hasan writes that the crowdfunding company has already seen a significant drop in crowdfunding projects being listed on the site, which is how Kickstarter makes its money. Projects are down by about 35 percent, the memo states, with “no clear sign of rebound.”

Conversations are now starting with Kickstarter’s union organizers about “potential layoffs.” Sixty percent of Kickstarter’s 140 employees are unit members, and they successfully voted to unionize in February this year, making them the first major technology company to do so.

“We must look more broadly at ways to restructure the business, including potential layoffs across teams and at all levels of staff.”

Hasan writes that the company brought in $1.27 million in after-tax profit last year, and that money has already been reinvested back into the business. He’s now looking for more “significant cost-cutting,” including reducing senior leaders’ salaries, including his own, not automatically back hiring open roles, and cutting the budget “wherever we can.” Still, layoffs are likely imminent.

“We must look more broadly at ways to restructure the business, including potential layoffs across teams and at all levels of staff,” the memo states. Hasan says Kickstarter is in talks with the Office and Professional Employees International Union (OPEIU), which represents Kickstarter’s union. The OPEIU says it has begun discussions with Kickstarter management, but it’s still too early in the process to comment further.

Kickstarter has tried to encourage creators to keep posting projects during the pandemic. It launched a program that solicits small-scale projects that they can work on from home. At the same time, it started moderating COVID-19 projects to weed out any that pushed misinformation or phony solutions, while still promoting other projects that use the pandemic for good, like social-distancing achievement stickers.

You can read the complete memo below: