Today is a significant day at Faithlife, and I want to share some news directly with you all and explain what’s happening and why.
We’ve made the difficult decision to downsize our workforce and part ways with a number of Faithlife employees. We’re very sad to see these colleagues and friends go, and we’ll be supporting them as they find their next employer.
Faithlife is not in financial trouble, and we are committed to serving and supporting you, our users - and are confident in our ability to do so for decades to come.
2020 and 2021 (especially the first half) were strong growth years for us, as we added more new users than in any comparable period. We now realize that much of that growth was fueled by what’s been referred to as the “COVID bump,” the growth in consumer eCommerce spending due to economic stimulus and extra time and occasion to study the Bible. We didn’t sufficiently appreciate that some of this growth was temporary and would slow after things started getting back to normal and the stimulus funds ended. Nor did we anticipate the current economic slowdown and the impact that it would have on spending.
Our cost structure has been growing faster than revenue for a few years now, and we’ve accepted this as a worthy tradeoff as we invest in the future of our business and the furtherance of our mission. Unfortunately the current economic climate has exposed the limits of this model, and made clear that we cannot continue investing at this rate. While we’re still growing, are financially stable and are very optimistic about our future, we’ve chosen to take action now to provide breathing room to weather changes in the global economy, and to give us the flexibility to invest more intentionally in future growth opportunities.
While this is incredibly painful, we believe it’s the right decision to ensure we’re around for decades to come as we steward our responsibility to “use technology to equip the Church to grow in the light of the Bible” and “increase biblical literacy and accessibility for every Christian around the world.”
We invite you to join us in praying for those who are no longer with us that God would be their strength and provide for them and their families.
Vik