this post was submitted on 28 Feb 2024
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Wait. Why is Reddit losing so much money? (www.businessinsider.com)
submitted 9 months ago* (last edited 9 months ago) by spider@lemmy.nz to c/reddit@lemmy.ml
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Reddit kind of anticipates this critique in its investor docs, and argues that it didn't really start operating as a serious business until 2018 when it finally started "meaningful monetization efforts" — that is, trying to make money for real.

But that's still six years ago. What has Reddit been doing since then?

One big, obvious answer: It has been hiring a lot of engineers and spending a lot of money on their salaries...

...What am I missing? I asked Reddit comms for comment but they declined, citing the company's quiet period before the IPO.

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[–] Vendetta9076@sh.itjust.works 32 points 9 months ago (1 children)

They think that cause they aren't a tech worker. Also, as a non American tech worker were also underpaid.

[–] agressivelyPassive@feddit.de 5 points 9 months ago (2 children)

I'm a senior software developer. I know how the industry works. And I also know the incredible arrogance of IT people thinking they're only millimeters away from being literally gods.

[–] zloubida@lemmy.world 9 points 9 months ago

Username checks out.

[–] Vendetta9076@sh.itjust.works 3 points 9 months ago (1 children)

Sure but thats the same in every technical industry. Doesn't have anything to do with pay.

[–] agressivelyPassive@feddit.de -1 points 9 months ago (2 children)

No, it's not. Other industries have standards. Nobody would try to re-invent bolts for no reason. Software engineers do. All the time.

And it is related to pay. Or better, willingness to pay. VC funded firms are willing to spend a lot of money on hiring "top talent", but they let them run relatively free. So instead of using a not 100% fitting solution off the shelf, they build a custom solution, that costs obscene work hours and fits a tiny bit better for 3 weeks. That means, a lot of the work of these very capable engineers gets wasted in the sense that it doesn't create business value. So the business value they do create gets more expensive to produce.

[–] Baines@lemmy.world 0 points 9 months ago

lol that bolt comment is factually wrong

[–] Vendetta9076@sh.itjust.works 0 points 9 months ago (1 children)

You seem to have a hatred for the tech industry and a very warped view of it vs the work force.

[–] agressivelyPassive@feddit.de 0 points 9 months ago (1 children)

Again, I'm part of it.

[–] Vendetta9076@sh.itjust.works 0 points 9 months ago

That does nothing to change what I've said