Toronto-based storytelling platform, Wattpad owned by Naver’s Webtoon Entertainment, underwent a recent workforce reduction, cutting approximately 15% of its staff, or around 30 jobs, TechCrunch reported.
This move, part of the company’s restructuring plan, aims to trim costs as its LA-based parent company prepares for a potential initial public offering in the U.S. by 2025.
Webtoon Entertainment oversees three storytelling subsidiaries: Wattpad in Toronto, Naver Webtoon in Seoul, and Line Digital Frontier in Tokyo. The recent layoffs mark the second round for Wattpad, following a reduction of 15%, approximately 42 jobs in March 2023.
The restructuring aligns with Wattpad’s shift toward a freemium model, “Wattpad Originals,” introduced in October. This model allows writers to offer certain chapters behind a paywall while providing readers access to free content for sampling. The company also introduced “premium Picks,” granting Premium and Premium+ subscribers monthly access to five free Wattpad Originals.
Naver acquired Wattpad in 2021 for $600 million, integrating the storytelling platform into its publishing division. Despite these strategic adjustments, Wattpad remains a significant player in the evolving landscape of digital storytelling.
