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this post was submitted on 12 Jun 2023
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I don't believe their hosting costs are that high. But they did go from about 700 employees to somewhere around 2000 employees. I suspect a lot of their overhead is headcount.
instead of giving the site a working search feature after 15 years, they doubled down on year end wrap ups, vertical videos, chat, and other nonsense
Which makes spez' claim that their top priority now is delivering new moderation tools so damn hilarious.
This doesn't get mentioned enough. They drastically increased their workforce during covid. That is a massive new expense and what exactly do they have to show for it? Has Reddit improved in that time? I don't see that it has. Now suddenly this bizarre API move. None of it adds up to good leadership to me.
They also could have taken loans to reinvest in growth. From buying alien blue, to their api, to backend changes to add new ad offerings and whatever else they sell to companies... They're all major efforts, and probably include marketing campaigns
If they took loans to grow... Well if you grow explosively it's a huge win, but if you don't you're weighted down moving forward. And investors are going to love it, since they don't care about breaking even, they care about that one investment that's going to go 100x or more