Reddit decides if a community is NSFW — not the moderators.
Reddit is sending strongly-worded messages to moderators of certain subreddits that are marked as NSFW (Not Safe For Work), telling them to remove the tag or face being removed.
Mods are like game devs, the powers that be know they can treat them like absolute shit because there is an endless supply of replacements who are willing to be treated like shit for the opportunity to do the work.
That is untrue. Reddit would do just fine without their mods. Mods dont moderate subreddits out of the goodness of their heart to volunteer their time. They do it because they like having power over their communities. Reddit is threatening to take away that power from them, which is why they all crumbled so fast. It is unbelievably easy to find new people to take power over an internet community.