Wattpad, owned by Naver’s Webtoon Entertainment and located in Toronto, cut off 20 employees, or 10% of its employment, according to a spokeswoman.
The spokesman informed Eltrys that the company restructured many teams and currently has 200 people.
According to a source, the move is part of the firm’s restructuring strategy to save expenses as its LA-based parent company prepares for an IPO in the U.S. in 2025. Wattpad in Toronto, Naver Webtoon in Seoul, and Line Digital Frontier in Tokyo are Webtoon Entertainment storytelling businesses. 
This is the company’s second layoff. In March 2023, Wattpad fired 42 of its 267 employees, or 15%.
Local media, including The Korea Economic Daily, stated that 30 employees, or 15% of the staff, were eliminated this week.
Wattpad Originals, a freemium model established last October, lets writers conceal chapters behind a paywall and lets readers try before they buy. The firm just introduced “Premium Picks,” which provides Premium and Premium+ customers with five free Wattpad Originals every month.
To integrate Wattpad into its publishing division, Naver bought the 2006-founded storytelling platform for $600 million in 2021.
