Reddit has announced that it will reduce its workforce by approximately 5%, resulting in the layoff of approximately 90 employees. The decision adds Reddit to a growing number of technology companies in corporate America that are downsizing their staffs.
A number of tech companies, including MetaPlatforms (formerly known as Facebook), are implementing job cuts as they prepare for a possible economic downturn after a period of aggressive hiring during the pandemic.
Meta recently went through a series of layoffs, eliminating 10,000 positions across various departments. The company’s downsizing move was initially announced in March and culminated with its latest round of job cuts last month.
Reddit, which was spun off from Conde Nast in 2011, grew in popularity due to the addition of Wall Street Bets and other forums to its platform that attracted retail investors interested in speculative stock trading.
Reddit will also scale back its hiring plans for the remainder of the year, according to an email sent to employees by Chief Executive Steve Huffman, as reported by JEE News. The company initially planned to hire 300 new employees but will now reduce that number to around 100.
In late 2021, Reddit secretly filed for an initial public offering (IPO) with the US securities regulator. The company’s message boards gained significant attention during the meme-stock frenzy, attracting day traders and investors alike.
