this post was submitted on 11 Jun 2023
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[–] UlfKirsten@feddit.de 8 points 1 year ago (2 children)

I don’t want to defend them, but what costs do they have?

[–] Silviecat44@vlemmy.net 10 points 1 year ago (1 children)

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

[–] derived_allegory@beehaw.org 12 points 1 year ago* (last edited 1 year ago) (1 children)

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

[–] bitsplease@lemmy.ml 3 points 1 year ago (1 children)

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

[–] mikegioia@lemmy.ml 6 points 1 year ago (1 children)

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.

[–] honk@feddit.de 3 points 1 year ago (1 children)

100k a year??? On average? Never.

[–] mikegioia@lemmy.ml 2 points 1 year ago* (last edited 1 year ago) (1 children)

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 1 points 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

[–] HooverMan@sh.itjust.works 7 points 1 year ago

Hosting all the photos and videos. Paying for that CPU/GPU power and the electricity isn't cheap.