Wattpad, a storytelling platform, has announced layoffs of 42 employees, which amounts to 15% of its workforce. The company has stated that the economic environment has resulted in cost-cutting measures that have impacted all of its divisions. The departing employees will receive at least 12 weeks of severance pay and six months of continued benefits. They will also be allowed to keep office-allocated devices, such as laptops.
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In a blog post, the company’s interim president, KB Nam, stated that the decision was “difficult but necessary”. He added that the layoffs were in response to changing business realities and needs and were not a reflection of individual contributions. Last year, Wattpad was acquired by South Korean company Naver for $600 million.
Wattpad had appointed Naver Webtoon’s Nam as interim president after Jeanne Lam resigned from the position. The company introduced a new creator program last year that could pay writers up to $25,000. It also launched a new metric for writers called “Engaged Readers” in June 2021.
