The online storytelling platform Wattpad revealed on Tuesday, that it had let go of 42 of its 267 employees, or nearly 15% of the workforce.
The corporation attributed the employment cuts to the difficult economic conditions that are hurting businesses of all kinds.
The laid-off staff will receive at least 12 weeks of severance pay and six more months of benefits. They will also be permitted to keep equipment that is assigned to their offices, including laptops.
The corporation criticized the current economic climate for the cost-cutting measures in a blog post, noting that the layoffs affect all of its divisions.
“As you all know, the global economic reality over the past year has fundamentally changed – and like other businesses, we are not immune. Despite our best efforts over the past several months to limit the impact of the changing economic environment, today, we’ve made the difficult but necessary decision to reduce our workforce,” the company’s interim president KB Nam said.
“This does not mean that these team members haven’t been an important part of our work. It’s important to note that these decisions are in response to changing business realities and needs, and are in no way a reflection of individual contributions. Everyone at Wattpad has accomplished a tremendous amount and had a positive impact on our company.”
Following a $600 million acquisition, Wattpad joined the South Korean corporation Naver in 2021.
The business unveiled a new creator program in June last year, offering writers up to $25,000 in compensation. A brand-new measurement statistic for writers called “Engaged Readers” was also introduced.
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