Earlier quoted context omitted.
It's purely a numbers game. If the amount of revenue you'll achieve from less users gives you a more positive multi year outlook financially then losing the users is "worth it", especially if those users fall into cohorts that are less financially valuable. Unfortunately that includes people who take part in blackouts as they correlate highly with people who e.g. run adblockers, use third party apps, etc.
> [...] especially if those users fall into cohorts that are less financially valuable Maybe, but my guess is they also produce the majority of the content that other users come to Reddit to consume. So it's a dangerous game.
There's going to be some inertia. You can recycle old content to mix with the "native advertising" spam that will fill the vacuum left by the people who used to "produce the majority of the content" - it's not a long-term solution, but if it keeps the user bleed in check until IPO, then the C-suite and the investors win; afterwards, the site can go to hell, it's not their problem anymore.