Wattpad lays off staff in restructuring move 

Alex Omenye
Alex Omenye

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.

Share this Article
Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *