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Zombiepirate ,
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If by “perfectly illustrates” you mean “bait-and-switched two situations that are not remotely similar for cheap propaganda to appeal to right-wing dipshits who don’t understand the difference between attempting to mitigate generational systemic economic oppression and buying an impulse item,” then yes… It did do that.

ShadowPouncer ,

The really really sad thing is, Reddit could have done a half decent job and made a fair bit of money, but they decided on stupidity instead.

Sure, it would have upset some people a bit, but... Not by anywhere close to the same degree.

Alright, we're sorry, but use of the API is going to have to start costing money for some kinds of uses.

First off, people that just want to scrape everything get the following access, and a much higher rate limit, but it's going to cost $x.

Moderator tools will always be free, but the API will require that the tool be associated with a moderator, and it will only permit access to subs that the user is a moderator for.

Community bots will generally be free, subject to the following restrictions.

And 3rd party clients will be charged a minimal amount, calculated to be roughly equal to what we are making from similar users on the official clients, to make up for lost ad revenue. Alternate options involving profit sharing may be viable, contact X for details.

By accepting the API agreement, you agree that use of the wrong class of API usage (for example, using the community bot or 3rd party client classes for data scraping) will be billed, retroactively, at $X * 10.

There. That's really not that hard. And people would have been much less upset at that, at least as long as the fees were actually as described, and not based on, say, how much they would like to make per user.

You'd probably want a free tier for 3rd party clients for users of specific account types. If the user is paying for Reddit Premium, maybe 3rd party clients don't get charged for API usage for that user account. Or if the user is a moderator for a given subreddit, API usage for that user on that subreddit is also free. With an API that the client can use to check the status of such things. If they were smart, they would also have a process for users with disabilities to have their accounts exempted from fees. That last one is hard, because you need a verification process, but it would get them a lot of good will.

Again... This shouldn't be hard. And it would have turned into a viable revenue stream!

Hell, flatly disclose that the 3rd party cost is 30% more than the average cost of using the standard client, to support the effort required to maintain the API. (Largely bullshit, but it makes those users more valuable than those that use the official client, while not being expensive enough to make it impossible for anyone to offer a 3rd party client at an even remotely sane cost.)

Yes, this would have very sadly been the end of free 3rd party clients... But I for one would have been... Okay with paying a small amount per month/year through the app store for a client that didn't suck.

Instead, Reddit decided that committing suicide was the better path forward.

Pons_Aelius ,

Part 1

Reddit could slim down management as moves toward an IPO

Thomas Maxwell

Reddit is preparing for an IPO amid controversy surrounding changes to its API.
Reddit employees say the company has a bloated leadership structure with too many managers.
Staffers were told earlier this year that they'd need to do "less but better."

As Reddit prepares for an initial public offering that could come by the end of 2023, it's looking to flatten its management structure, and employees say the company has become bloated with executive- and director-level employees.

Reddit filed for IPO in December 2021, when demand for new tech stocks was at a fever pitch. It said it surpassed $100 million in advertising revenue in the second quarter of 2021. It has also made large investments in artificial intelligence, acquiring the machine-learning startup Spell in June 2022 to help customize ad placements.

Since then, demand for tech stocks has dropped. Reddit laid off 90 employees in early June as it aims to reach profitability. Its revenue growth has slowed, The Information reported.

To prepare for the intense scrutiny of the public markets, Reddit is whipping itself into shape; managers told employees in product earlier this year that the goal was to do "less but better." Part of the mandate could include slimming down middle management.

Reddit is also examining areas of its business where it could squeeze costs. It recently announced a controversial decision to charge for access to its API, or application programming interface, which enables developers to build tools that connect to Reddit. It argued that it couldn't support third-party apps that use Reddit's content but don't provide any money in return.

Insider spoke with five current and former Reddit employees, who requested anonymity as they were not authorized to speak to the press or had signed nondisclosure agreements to receive severance. They described some leadership moves and road-map changes that caused what one employee described as "thrash."

The 18-year-old social-media company has long had a culture of "trying to do too many things and doing them really poorly and not finishing them at all," the same employee said. Internally, they said, the company would now focus on "having a simplified product plan and sticking to it."

A Reddit representative declined to comment on this story and pointed to a blog post about the company's acquisition of Spell.
A flattening at Reddit

Reddit executives presented a distribution of managers to direct reports during its last quarterly leadership summit in May in New York City. The distribution showed that many managers oversee four to six people. Managers who attended the summit told employees that leadership suggested the company would in the second half of the year consolidate teams with managers overseeing fewer than six employees, two employees said.

Pons_Aelius ,

Part 2:

Employees say this could mean more managers may leave through managed exits.

Reddit is not the only tech company flattening its leadership structure. Meta CEO Mark Zuckerberg said earlier this year that the company would reduce its number of product managers and directors to make it more efficient. Meta had given managers the option to be demoted, with the expectation that many would choose to leave. Shopify has also tried to flatten its organization.
Lost trust in leadership

Reddit employees said they lost trust in leadership after a series of missteps. For example, they said they were repeatedly told before the company conducted layoffs in June that layoffs wouldn't happen.

Product road maps changed in May as the company focused on the API changes and on boosting content creation by users.

The recent change to charge for access to Reddit's API also led to protests from moderators. While many employees supported the API changes, they said Reddit's moderators deserved credit for helping grow the site. A former employee who left in April argued that company leadership should have invested more in supporting moderators and that building tools for Reddit's moderator community "has never been a priority" for leadership.

"Reddit has long had staff who have worked hard to provide a better mod experience, but the will to improve this has never come from the top, and Reddit has yet to fund them to the extent they need to," one employee said.

Illustration of a Reddit logo on a mobile phone with a laptop behind it
Reddit.
Getty Images

On top of that, Reddit hasn't been able to fully integrate Spell's technology since its acquisition, two employees familiar with the matter said. One employee described Reddit's CEO, Steve Huffman, as having pushed through the acquisition despite opposition from vice presidents and directors, as well as bringing its founders as vice presidents and directors "despite Reddit not needing more of either."
Leadership shake-ups

Reddit had some leadership changes earlier this year. Jack Hanlon, who was the vice president of feeds, AI, search, and data, parted ways with the company in March, he and the company confirmed. Hanlon led product and engineering for several areas of the company, including machine learning and data science.

In May, Reddit's head of data science, Jose Lobez, was replaced by Tyler Otto, who'd joined Reddit from Hipmunk, a travel website Huffman founded.

Three employees described Lobez's departure as a surprise, as he was well liked within the data-science organization. "He basically grew the data-science organization himself — a big cultural figure internally," one said. They described Lopez as "pretty open both with reports and about the org as a whole," adding that he "helped deal with interorganization disputes pretty well."

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