• Soviet Snake@lemmygrad.ml
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      1 year ago

      When they talk about being profitable what they mean is that the CEO needs to be paid some stupid wage like 10.000.000 a month, then being able to cover employees salaries and then costs of hosting and so on, and then, still being able to accumulate at last the double of the money per month so that they can see “growth”. Basically it all comes down allowing a parasite to live for free off the backs of the working class. If CEO or shareholders would earna normal wage, I bet your ass Reddit would be profitable as hell if what you care about is building an awesome tool.

    • Silviecat44@vlemmy.net
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      1 year ago

      I would assume the majority comes from hosting? Then again I know nothing about how reddit operates.

      • derived_allegory@beehaw.org
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        1 year ago

        developers are quite expensive too.even though they don’t have many developers, it can still be a huge spending.

        • bitsplease@lemmy.ml
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          1 year ago

          Reddit as a whole has somewhere around 2k employers (minus 90 after the layoffs)

          That’s a shockingly high number considering how little user facing development there has been

          • Mike@lemmy.ml
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            1 year ago

            2k employees at 100k/year for everything would be 200M/year just in compensation. That, plus hosting and all the server costs could put them close to this ad revenue if not slightly over. However, this ad revenue isn’t including things like reddit gold and gifts, I’m curious to see how that factors in.

              • Mike@lemmy.ml
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                1 year ago

                I just meant average cost per employee. That includes their salary but also health insurance, benefits, and payroll taxes. Definitely not everyone is getting 100k salary, but I think that’s a pretty conservative estimate for total employee cost at a tech company of their size.

                • honk@feddit.de
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                  1 year ago

                  Okay…i have no clue how much an employee in america would cost. My comment was more an immediate shocked reaction of disbelief than actually stating that you were wrong lol