Reddit Set to reduce workforce by approximately 5%

On Tuesday, the popular social media platform Reddit announced its intention to reduce its workforce through layoffs, impacting approximately 5% of its employees, which translates to around 90 individuals. This decision falls in line with the prevailing trend seen in the technology industry, where numerous companies are taking precautionary measures by implementing job cuts amid concerns about a potential economic downturn. Meta Platforms, the parent company of Facebook, has also embarked on a similar path.

In March, Meta revealed a three-part layoff plan aimed at eliminating a total of 10,000 positions within its business and operations units. Reddit, which became an independent entity in 2011 after separating from Conde Nast, witnessed a significant surge in popularity fueled by the emergence of forums such as WallStreetBets on its platform. These forums attracted retail investors seeking to engage in speculative trading. The initial report about Reddit's layoffs was made by The Wall Street Journal, which cited an internal email sent by CEO Steve Huffman to the company's employees.

According to the report, Huffman indicated that Reddit would also scale back its hiring plans for the remainder of the year, aiming to bring on board approximately 100 new hires instead of the previously intended 300. In December 2021, Reddit filed for an initial public offering (IPO) with the U.S. Securities and Exchange Commission (SEC) on a confidential basis. This move came after the company's message boards gained significant attention during a meme stock frenzy driven by day traders.