Wattpad Webtoon Studios was unaffected in a recent workforce cut at Toronto-based digital publisher Wattpad.

The company laid off 42 employees last week – roughly 15% of its 267-person team – due to the “changing economic environment,” according to a memo from interim president KB Nam that was issued to staff and posted on the company website.

“The reality is the conditions that have historically enabled us to make bold moves have changed, and we are operating in a very different environment today,” wrote Nam. “After nearly doubling the size of our teams, it’s now clear that we need to recalibrate based on our current business needs and realities.”

All of the cuts were within Wattpad’s platform teams, a spokesperson for Wattpad has confirmed to Playback Daily, and will not impact its film and TV production division, Wattpad Webtoon Studios.

Nam’s memo stated that the company will support employees impacted by the cuts, including a package of 12 weeks of severance and six months of continued benefits.

Wattpad was acquired by South Korean internet conglomerate Naver in 2021 in a deal valued at more than US$600 million, leading to a merger with fellow subsidiary, the web comic platform Webtoon. The company was led by then-CEO Allan Lau at the time of the acquisition, who transitioned to an advisory role in 2022. Jeanne Lam took the reins as president, but departed at the end of 2022, with Nam appointed as interim president.

The combined Wattpad and Webtoon Studios develops and produces film and television content based on digital books and comics published on their respective platforms. Popular Wattpad adaptations include the After film series and the Netflix Spanish-language original Through My Window (pictured). Among the recent projects announced is YA film Boot Camp, produced by Vancouver-based Thunderbird Entertainment’s Great Pacific Media.

The tech industry has seen a number of layoffs in the last year, with Meta CEO Mark Zuckerberg revealing in a memo published Tuesday (March 14) that the Facebook and Instagram parentco would let go of approximately 10,000 employees in the coming months and set a temporary hiring freeze. The company laid off roughly 11,000 employees in fall 2022.

Among the Canadian companies to announce layoffs in the last two months are Cineplex and Corus Entertainment.

Photo courtesy of Netflix