Kickstarter announced in an internal memo April 20th 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.

Kickstarter United, the union that represents 60 percent of the company’s 140 employees, said the agreement includes four months of severance pay. The company will continue healthcare coverage for any laid-off employees for up to six months, depending on salary.

Kickstarter is offering voluntary buyouts to union members. It includes the ability to opt out of health insurance coverage and receive partial payment instead.

‘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,’ said Gallagher. Once the company knows who is interested in a buyout it will be able to determine how many layoffs may be required, he added.

Kickstarter workers successfully voted to unionize in February. They’re represented by the office and professional employees International Union (opeiu).

Kickstarter brought in $ 1.27 million in after-tax profit last year. Hasan cited other cost-cutting measures including a reduction in senior management salaries and not hiring for some vacant positions.

‘we are proud to stand shoulder-to-shoulder with our entire Union family in this multifaceted fight for our families’ futures,’ said opeiu president and local 153 business manager Richard lanigan.

The union said the company’has n’t made any statements about the potential scale of the layoffs’. Union said layoffs may include up to 45 percent of Kickstarter employees.