Reddit announces it will lay off 5% of workforce, cut back on hiring

Reddit has become the latest tech company to announce layoffs saying it will be sacking approximately 5 per cent of its workforce, amounting to around 90 employees.

The company joins a growing list of technology firms in corporate America that have been trimming jobs in recent times.

Various tech companies, including Meta Platforms, have been downsizing their workforce after experiencing substantial hiring during the pandemic. These actions come as the industry prepares for a potential economic downturn.

Meta, the parent company of Facebook, recently underwent a round of job cuts across its business and operations units. Last month, the company completed the final phase of a three-part layoff initiative initially announced in March, aiming to eliminate 10,000 positions.

Reddit, which separated from magazine conglomerate Conde Nast in 2011, witnessed a surge in popularity in recent times. The platform gained appeal due to the rise of communities like WallStreetBets, where retail investors engage in stock speculation.

The Wall Street Journal first reported Reddit's decision on Tuesday, citing an email sent by Chief Executive Steve Huffman to the employees.

According to Huffman, the company will also scale back its hiring plans for the remainder of the year, aiming to hire only around 100 individuals instead of the originally intended 300, as outlined in the WSJ report. In December 2021, Reddit confidentially filed for an initial public offering with the US securities regulator. The company's message boards had gained significant attention during the meme stock frenzy, attracting day traders to the platform.

The specific reasons behind Reddit's workforce reduction and its impact on the company's operations and future plans remain unclear.