I mean there’s Reddit ofc, as well as Twitter in its entirety, Discord is implementing some dumb updates, there are issues with Tumblr as well as everything to do with Meta, and I’m sure there are plenty more (and I haven’t even touched other digital media, for example the Sims). Why is it all happening in the span of about a couple months?

  • Saltycracker@lemmy.world
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    1 year ago

    Interest rates went up and investors aren’t able to get cheap money. So investment is drying up. A few banks collapsed. Tech companies are trying to make a profitable business. Instead of a zombie company

    • StagYeti@lemmy.world
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      1 year ago

      This is it in a nutshell, without any “late stage capitalism” nonsense.

      Reddit, like Twitter and other prominent tech companies, was supported largely by outside investment. The company didn’t make a profit, but investors continued to put money into it in hopes that it would eventually net them a return. Low interest rates make investment capital easy to come by and relatively low risk, but higher borrowing rates have dried up a lot of that funding. This forces the company to find other ways of sustaining itself.