Naver's US Web Novel Platform Wattpad Lays Off Over 30 Employees

Second Since March Last Year

Watpad, a North American web novel platform and a subsidiary of Naver, has carried out another round of layoffs after one year.

According to the webtoon industry on the 29th, Watpad laid off about 30 employees, equivalent to 15% of its total workforce, earlier this month. This is the second round of layoffs following the reduction of 42 employees in March last year.

Watpad is a major web novel company acquired by Naver in 2021 for $600 million (approximately 653.3 billion KRW at the exchange rate at the time).

While aiming for synergy between North American Webtoon Entertainment, the parent company of Naver Webtoon, and Watpad, about 100 new employees were hired over two years immediately after the acquisition, but the expected significant results were not achieved.

Since last year, the global content market has faced a downturn due to the COVID-19 endemic. Watpad appears to have decided on layoffs to improve management efficiency ahead of Naver Webtoon's U.S. stock market listing.

Meanwhile, Naver Webtoon is accelerating its webtoon and web novel intellectual property (IP) video adaptation business in collaboration with Watpad. Last year, Watpad Webtoon Studio announced plans to produce a Spanish-language film, and recently signed an agreement with Zeta Studios, a Spanish production company known for Netflix series such as "Elite."