WattpadA Toronto-based storytelling platform owned by Nevers Webtoon EntertainmentIt conducted another round of layoffs earlier this month.
Wattpad has cut about 30 jobs, or about 15% of its workforce, a source familiar with the situation told TechCrunch. According to local media outlets, incl Korea Economic Daily, the cut affected about 30 employees. A Wattpad spokesperson did not respond to a request for comment before publication.
The move is part of the company's restructuring plan aimed at cutting costs as the LA-based parent seeks to further improve its finances. Initial public offering in the US by 2025, the source said. Webtoon Entertainment has three storytelling subsidiaries: Wattpad in Toronto, Naver Webtoon in Seoul, and LINE Digital Frontier in Tokyo.
This is the company's second round of layoffs. Wattpad In March 2023, 42 of its 267 employees, or 15%, were laid off..
Last October, Wattpad Launched a new freemium model“Wattpad Originals,” authors try to hide certain chapters behind a paywall and before readers can access and purchase free content. Recently, the company started offering “Premium Picks”. It gives Premium and Premium+ subscribers monthly access to five free Wattpad originals.
In 2021, Naver acquired Wattpad, founded by Allen Lau in 2006, for $600 million to include the storytelling platform in its publishing division.
We'll update this piece as we learn more.