Reddit will also reduce its hiring for the remaining year to about 100 people from 300 earlier.
American social media platform Reddit is laying off 5% of its workforce, impacting 90 employees. With this, Reddit has joined several other companies in the United States that have trimmed their workforce as they brace for a global economic slowdown.
According to a report by The Wall Street Journal, citing an email from Reddit’s chief executive officer Steve Huffman, the company will also reduce its hiring for the remaining year to about 100 people. This is down from the company’s early plan of 300 people. The latest decision will help the company break even next year.
Founded in 2005 by Steve Huffman and Alexis Ohanian, Reddit is a social media platform and online community where users can share, discuss, and vote on content. Reddit covers a wide range of topics, from news and entertainment to niche hobbies and interests. In 2021, the company confidentially filed for an initial public offering with the U.S. securities regulator. The social media platform is reported to go public in the second half of the year once the market sentiment improves.
Not just Reddit but several other companies, especially in the tech sector, including Sundar Pichai-led Alphabet, Elon Musk-led Twitter, and Satya Nadella-led Microsoft, among others, have laid off thousands of employees in an attempt to gear up for a global economic slowdown.
Late last month, Facebook parent Meta was reported to have laid off another 6,000 employees from non-technical departments. Including the latest job cuts, Meta’s workforce is reduced by around 21,000 employees since November. In a nutshell, a setback in consumer spending due to high inflation and interest rates along with the threat of a looming recession this year has pushed corporates to keep a lid on their spending.