Wattpad, a popular storytelling platform based in Toronto and owned by Naver’s Webtoon Entertainment, has recently undergone another round of layoffs. The company has cut approximately 15% of its workforce, which amounts to around 30 jobs. This move comes as part of Wattpad’s restructuring plan to reduce costs, aligning with its parent company’s efforts to improve its financial standing ahead of a potential initial public offering in the U.S. by 2025.
Key Takeaway
Wattpad, owned by Naver’s Webtoon Entertainment, has implemented a second round of layoffs, reducing its workforce by 15% as part of a restructuring plan to enhance financial stability. The company’s evolving business model and Naver’s acquisition raise questions about the potential for Korean digital storytelling platforms to capture audiences beyond their home markets.
Company Restructuring and Layoffs
This recent layoff marks the second time Wattpad has reduced its workforce, following a previous cut of 15% of its staff in March 2023. The decision to downsize is attributed to the changing economic environment and the need to streamline operations in line with the company’s financial objectives.
Impact on Wattpad’s Business Model
Despite these challenges, Wattpad has been actively evolving its business model. Last October, the platform introduced “Wattpad Originals,” a freemium model that allows writers to offer select content behind a paywall while providing free access to other material. Additionally, the company recently rolled out “premium Picks,” offering exclusive monthly content to its Premium and Premium+ subscribers.
Naver’s Acquisition and Future Prospects
Following Naver’s acquisition of Wattpad for $600 million in 2021, the platform has become an integral part of Naver’s publishing division. With Naver’s strong presence in the digital storytelling space, there is growing interest in whether Korean storytelling platforms, including Wattpad, can effectively engage audiences in North America and Europe.
