- Reddit will lay off about 5 percent of its workforce.
- The decision will affect 90 employees.
- Reddit CEO Steve Huffman shared the news of the layoffs with employees.
Popular social media website Reddit is the latest tech company to announce layoffs. The company, according to a Reuters report originally attributed to The Wall Street Journal, will show about 5 percent of its workforce the exit door. As a result, around 90 employees will lose their jobs. Currently, Reddit has around 2,000 employees and is used by people all over the world to start discussions, broadcast news, talk about common shared interests, and more.
Reddit announces layoffs
Reddit CEO Steve Huffman shared the news of the layoffs with employees. According to reports, the top executive told employees in the memo that he along with the team ‘reviewed and adjusted the company’s plan for the end of 2024’.
He added, according to a report in Fortune originally attributed to Bloomberg, “We had a solid first half of the year and this restructuring will prepare us to carry that momentum into the second half and beyond.”
He also said the company is prioritizing achieving “breakeven next year” and funding data and API tools for the platform’s moderators. Apart from this, according to the report, Reddit is also considering increasing the prices for third-party app developers.
Not only that, Reddit will also reduce hiring for the rest of the year. Earlier, the company had planned to hire around 300 new employees. But now only 100 people will be hired.
Reddit has secretly filed for an initial public offering with the US securities regulator in December 2021.
Tech layoffs
The tech industry has gone through a major upheaval in the last few months and many tech giants are laying off people left, right and center. From Google to Microsoft, many leading tech firms hand out pink slips to employees on a large scale. Google CEO Sundar Pichai announced the company’s decision to lay off 12,000 employees in January this year. On the other hand, Microsoft laid off 10,000 people in January and 500 in March.
Tech giant Meta has so far laid off around 21,000 employees. The first 11,000 workers were laid off in November last year and a second round of layoffs affecting 10,000 workers was announced in March.
Earlier this year, Mark Zuckerberg had declared 2023 as the ‘year of efficiency’ and said the company would ‘remove some layers of management to promote efficiency’ during an internal meeting.